Bargaining key as quotes near €5/kg
While the leaks from Germany last week were a tad embarrassing for the Irish Government, the leaks from the sheep industry yesterday were only good news for our farmers.
It was one thing to see quotes increasing by 5-15c/kg across the board but it was pretty clear to see that the €5/kg was becoming a pretty regular occurrence again -- and to 23kg.
Some unconfirmed reports yesterday morning were suggesting that a few finishers were negotiating up to €5.10/kg. The difference between getting this or accepting the quoted figure could be as high as €7-9/lamb.
As you will see from the table, the range of quotes has moved up to 470-485c/kg for today, with a 10c/kg jump from the two Kepak plants leaving them offering a base of 480c/kg plus the bonus.
This brings them level with Moyvalley Meats, which is quoting an all-in figure of 485c/kg. The biggest rise however, is at Dawn Ballyhaunis but, despite the extra 15c/kg, they are still pretty much mid-table at 475c/kg plus 6c/kg.
Kildare Chilling, with their added quality assurance bonus on top of their base of 470c/kg plus the 6c/kg, has the final figure more or less on a par with Dawn. Both ICM factories are quoting 470c/kg plus 6c/kg.
Factory sources were fairly open about farmers successfully holding out for more, with a genuine reluctance to sell at much, if anything, below the €5/kg.
The IFA's James Murphy said that the lamb trade is rock solid at the moment, with quotes up by 10c/kg and prices of 495-500c/kg being paid as factories try to secure continuing scarce supplies of lambs.