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Demand for lambs has this week intensified, as factories struggle to get their hands on the numbers required to satisfy increased orders for the Eid al-Adha festival.
The festival, which starts on Sunday and runs until Thursday, underpinned the highest weekly kill of close to 80,000 head in the corresponding week in 2018.
This week’s kill will fall well short of this figure, with throughput curtailed to varying levels by the Beef Plan Movement protest in some of the main export-focused sheep factories. The effect of this was felt at the end of last week, with throughput reducing 7,559 head to 52,802 head.
Factories have increased prices in a bid to attract higher numbers out.
Kildare Chilling has lifted its base quote to €4.80/kg, an increase of 20c/kg on last week’s level. The two Irish Country Meats plants in Camolin and Navan have increased their base quotes by 10c/kg to €4.60/kg, while reports indicate producer groups are securing a 5c/kg higher base.
Dawn Ballyhaunis and Kepak Athleague are facing the greatest disruption from the recent factory gate protests and were unavailable to quote for Thursday. Prices paid to producers in the first half of the week varied significantly.
Producer groups and those handling large numbers have secured returns of €4.80/kg to €4.85/kg, with top prices rising to €4.90/kg to €5.00/kg when bonuses and allowances on haulage are factored into the equation.
Producers selling individually were negotiating returns of €4.70/kg for quality assured (QA) lambs early in the week.
Kildare’s higher quote puts these lambs at €4.90/kg now, while reports show scope in other plants to move prices up by at least 5c/kg to 10c/kg.
Ballon Meats and Moyvalley Meats, which primarily focus on the home market, are quoting all-in prices of €4.70/kg.
Demand for Eid Al-Adha is likely to be strongest on Thursday and Friday, but will also carry through until Monday.
IFA sheep chair Sean Dennehy said: “Prices of €4.80/kg to €4.90/kg are becoming more common, with some top prices of €5.00/kg. Some sellers are also negotiating an increased carcase weight limit of 21.5kg.”
The increase in demand and sterling weakening in the favour of buyers sourcing lambs from Northern Ireland are adding more competition from southern buyers into mart and direct farm sales.
Quotes are static at a base of £3.75/kg, which is the equivalent of €4.08/kg at Wednesday’s exchange rate of 92.2p to the euro and €4.29/kg VAT inclusive at 5.4%. Regular sellers and producer groups are negotiating 10p/kg to 15p/kg higher returns in cases, with top prices ranging from £3.85/kg to £3.90/kg (€4.40/kg to €4.46/kg incl VAT).
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