‘Suitable’ hoggets still making up to €8.50+20c/kg QA
With Easter now past and Ramadan due to end this day next week, factories have lost no time in attempting to get back control of the sheep trade.
Granted the wiping by both Kildare Chilling and Dawn Ballyhaunis of 10c/kg off their quotes for hogget — bringing them back to €8.50+10c/kg quality assurance — is not exactly Armageddon, given where prices have gone over the last month, but it does indicate that those who write the cheques have not lost their ability to bite where it hurts.
The country’s largest processor of sheep, the ICM group, continues to offer a quote of €8.50+20c/ kg for “suitable” hogget but points out that some of what is being presented is “mixey” and will attract a lesser quote.
As always, the contracts specific factories have for specific products govern quotes and prices. To this end, while Dawn and the two ICMs continue to quote €3.40/kg and €3.70/kg respectively for culls. Kildare, however, lifted their offering for culls yesterday by 20c/kg to €3.60+10/kg QA for carcass weights from €23-35kgs, and €3.80+10c/kg QA for weights from 35-43kgs.
On the spring lamb side, the ICM group remains the only processor on our price table to officially quote for springs, with their offering of €9.00+20c/kg QA unchanged.
The latest commentary from Bord Bia indicates that with sheep numbers in the EU and Ireland low, the only serious threat to prices here may come when numbers of spring lamb increase later in the year, with the only concern being an increase in lamb coming into Europe from the southern hemisphere.
“The deadweight sheep trade is at record levels, driven by a combination of increasing demand in the lead up to Easter and Ramadan and tighter supplies for processing across Europe,” said a Bord Bia statement.
“Declines in the European sheep flock and a move towards killing lighter lambs in some regions to combat higher production costs have resulted in tighter availability of sheep for processing in the early months of 2024.
“There has also been a significant decline in hogget availability in the UK with the latest AHDB forecast indicating a 10pc decline in hogget carryover.
“Tighter supplies are expected until the 2024 lamb crop starts to come forward for processing in significant numbers.
“There continues to be a significant price differential with southern hemisphere lamb products, which makes the European market more attractive.”
Commenting on the current trade, IFA National Sheep chair Adrian Gallagher said; “Hogget prices have hit €9.00kg as factories struggle to match supplies with market demand.
“Factory prices are ranging from €8.70/kg to €9.00/kg for hoggets as the Easter and Ramadan festivals and strong supermarket sales continue to drive the trade.
“The limited number of spring lamb on offer are coming in at €9.20/kg to €9.50/kg in general, with higher deals for groups and larger lots.
“Strong factory demand is feeding through to mart sales where prices are comparable to and in cases above what factories are offering. Cull ewes are making from €3.70kg to €4.00kg in general.”
The question on most sheep farmers minds is — where might the trade overall go in the next few weeks? In essence, will factory prices hold?
Speaking with one factory rep, he was of the opinion that price fluctuation would be inevitable.
“There will be weeks when the trade shifts up or down by 10-20c/kg, depending on supply or market conditions, but at current prices, will anyone really notice,” he asked.
Obviously those selling will but at the end of the day, there are only so many sheep in the system and with imports from the north and the UK very limited, the consensus remains that there will be no sudden collapse in prices.