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Factories are working hard to source required lamb supplies as the week has progressed. Quotes for Thursday are unchanged, but it is clear there are significantly higher prices being paid, with quotes not reflecting upward movement in the market.
Prices of €4.55/kg to €4.65/kg are becoming much more commonly negotiated by regular sellers, while those handling higher numbers and trading at the top end of the market are securing an additional 5c/kg to 10c/kg.
This purchasing trend is allowing factories to source significant numbers and develop a solid supply base on which to work.
Reports suggest some producers with lower negotiating power and struggling to match quotes described above have held off moving sheep.
However, producer groups are voicing their frustration at quotes remaining unchanged, citing that they are not being rewarded for producing lambs to tight specification.
Weight limits have moved up to 22kg carcase weight in most plants.
Last week’s kill was recorded at 53,614 head, similar to the comparable week in 2018. Supplies of factory-fit stock in marts have tightened, with prices lifting by €1 to €2 per head since the start of the week.
Ewe quotes are also static, ranging from €2.30/kg to €2.40/kg, with Ballon Meats leading with its quote of €2.50/kg.
Numbers are following a seasonal decline and it is apparent that factories are rewarding suppliers handling large numbers with higher prices. This is very much reflected in a strengthening mart trade.
Rising prices
Quotes in northern plants have increased by 5p to 15p/kg. Dunbia’s quote for Thursday has increased 15p/kg to €3.65/kg.
This is the equivalent of €4.23/kg at 86.2p to the euro and €4.46/kg including at VAT at 5.4%.
Reports suggest factories have increased quotes to stay competitive with the live trade. The trade in marts and direct farm sales has recorded significant improvement and is being helped by tighter supplies and more activity from agents purchasing on behalf of southern plants.
The number of sheep exported south in the last week was recorded at 8,283 head.
This is a reduction of 1,499 head, which is not surprising, given there was one day’s less processing.
The British trade is also edging upwards. The latest AHDB price report shows last week’s average price increasing 4p/kg to the equivalent of €4.64/kg including VAT at 5.4%.
As is the case in Northern Ireland, there is further upward movement this week, with prices reported as rising 5p/kg to 10p/kg.
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