This is a subscriber-only article
Despite increased pressure on the mart trade due to higher numbers and delays in getting lambs processed in the Republic of Ireland, NI factory lamb prices are generally holding steady.
Base quotes were typically 365p/kg mid-week, with some farmers reporting 370p/kg being paid on Monday.
Farmers resisted attempts by processors to reduce base quotes to 355p/kg and 360p/kg earlier this week.
Despite that, at 365p/kg, lamb prices are down 30p/kg on the same period last year and at their lowest level in September in four years.
Protests
The factory blockades at Irish processing plants are impacting on the NI mart trade where the majority of export lambs are sourced.
Blockades prevented Kepak and Dawn Meats from processing lambs earlier this week, while slaughter at Kildare Chilling was hit on Monday.
Kepak is a key outlet for NI lambs moving south of the border. It is understood that the other main outlet, Irish Country Meats, has been operating as normal.
But the net result of the factory blockades is that fewer Irish lambs are required for processing, and as such demand for NI lambs has weakened.
Weight
Meanwhile, speaking at this weeks’ AgriSearch lamb finishing event held at Swatragh Mart, Colin Smith from the LMC said that 50% of finished lambs in NI are over the 21kg limit, which is limiting the number of market outlets willing to pay premium prices to farmers. He said that supermarkets and exporters require carcases of 18kg to 21kg at E, U, R grades and fat class two or three. Butchers will accept lambs to 22kg.
Smith also outlined how various factors have acted to take prices down this year, including pressure on lamb consumption and uncertainty around Brexit, which has meant customers in export markets have been buying lambs on short-term contracts this year.
However, he said there is potential to grow UK exports of lamb, with China increasing the volumes of imported meat after a major depopulation of its pig herd due to African Swine Fever.
SHARING OPTIONS: