Hogget prices rise another 30c/kg, cull ewes add 20c/kg

When factories started offering €8.00/kg for hogget around a month ago, my report here referenced that god in heaven would be pleased at the news.

However, with the IFA claiming hogget prices yesterday ranged from €8.70-9.00/kg and ICSA reporting prices from €8.80-8.95/ kg, the reality continues to be that factories and supermarkets have no problem paying prices that even god in heaven could not have predicted, much less your ordinary sheep producer on earth.

A look at the factory price table here shows that factory quotes for hogget were up another 30c/kg across the board yesterday, with both Kildare Chilling and Dawn Ballyhaunis on €8.60+10c/kg quality assurance, while the two ICM plants quoted €8.50+20c/ kg QA for hoggets.

Quotes for cull ewes were also stronger yesterday with all four plants adding 20c/kg to their quotes. This brought the quote from the two ICMs to €3.70/kg, with Dawn on €3.40/kg and Kildare €3.40+10c/kg quality assurance.

On the spring lamb side, the two ICM plants continue to be the only ones on our table to offer a quote with their offering yesterday of €9.00+20c/kg QA unchanged from last week.

While supplies are small, both IFA and ICSA report springs as selling from €9.30-9.50/kg.

With the factory trade the strongest ever recorded, those buying at the country’s sheep marts seem intent on setting records that will stand for all time.

It’s not that very long ago that a good price for hoggets might see them average €3.00/kg, however, in the last month mart prices have shot up to the point that the top of the trade is now north of €4.00/kg.

As if to underline the demand for sheep meat even further, the trade for cull ewes at the marts is, in the words of one agent, “gone stupid”, with 50-60kg culls in Carnew also selling to €4.00/kg.

The North’s Livestock and Meat Commission reports factory hogget in the UK as averaging €9.20/ kg for the week ending March 17, with northern plants averaging €8.12/kg. Supplies of spring lamb in the north and the UK are reported to be very limited.

With sheep prices continuing to go where they have never gone before, is there a possibility that too much of a good thing might have negative consequences?

While overall sheep numbers are expected to contract further, several observers of the trade told me they expect to see fewer ewe hoggets surviving to the autumn to provide the foundation for next year’s lamb crop because of the attraction of current factory prices for hogget.

And then there is the reality that there are fewer sheep farmers able or willing to put up with the stress of lambing, especially this year as the chronic weather has caused increased hardship and more mortality among lambs.

I put the above points to a senior factory rep to see whether the message that sheep numbers might yet fall further was registering with processors.

The factory man concurred on all points, pointing out he was already aware of breeding farmers who had gone through their hoggets and drawn off 20pc of poorer quality for slaughter.

“Where he normally would have a hundred for breeding this year, he’ll only have eighty.”

Is this a concern for the industry? “Absolutely,” was the reply.