Spring lamb opens at €9.00+20c/kg QA, hogget rises again

After weeks of speculation about where and when factory quotes for spring lambs might open, ICM hit the ground on Sunday at €9.00+20c/kg QA to 20.5kg, and €10/kg for milk lamb.

As of yesterday, the other companies on our price table had not quoted.

Equally importantly, quotes for hogget rose again over the weekend as factories tried to entice more farmers to sell in the run-up to Easter.

Dawn Ballyhaunis and Kildare Chilling add 30c/kg, bringing them to €8.30+10c/kg quality assurance, while the ICM added 35c/kg to reach €8.20+20c/kg QA.

Quotes for cull ewes were also up by 10c/kg across the board, with the ICM group leading the way on €3.50/kg.

Kildare continue to offer more for heavier ewes, quoting €3.40+10c/kg QA for carcass weights from 35-40kgs.

ICM’s decision to quote for springs came as a surprise to many as with hogget prices so strong and this lamb crop thus far very small, it was expected that processors would wait until after Easter.

It is now obvious that supermarkets intend to stock new-season lamb in the run-up to Easter, in keeping with tradition, even though supplies will be tight.

Will ICM’s move force Dawn and Kildare to quote for springs later this week

It’s interesting that while factories will cite all sorts of issues for prices coming back — from poor market conditions to bigger numbers of inferior quality or heavy sheep — not one representative I’ve spoken with over the last few weeks has complained about where prices are now.

One procurement officer memorably compared the sheep trade to the TV series Star Trek, saying: “Prices are now in outer space, and the trade is in a place where it has never gone before.”

ICSA president Sean McNamara said the strong prices are “long overdue and reflect the reality that the industry can pay farmers properly when they have no choice”.

He said he is seeing deals for hogget being done at €8.60/kg, with spring lambs making €9.50/ kg and cull ewes €3.70-3.80/kg.

He expects the strong trade to last for another three months because “this year’s lamb will only become available in numbers from June on”.

Industry sources agree that bigger numbers of lamb will not become available until June.

Strong prices here reflect the trade further afield, with Bord Bia data showing that average sheepmeat prices across the EU and the UK have hit record highs.

These prices are being driven by the fall in the European sheep population from 100 million in 2010 to 60m by mid-2022, while an increasing Muslim population has increased demand for sheepmeat consistently throughout the year and not just around religious festivals.

With numbers tight and lamb/hogget prices up to €40/ hd stronger than this time last year, will sheep meat become too expensive for the consumer?

Factory representatives point to supermarkets running Easter promotions as being a major factor in keeping lamb both “enjoyable and affordable”.