Drop in demand fuels shock fall of €10/lamb
Lamb quotes have been smothered beneath a pile of volcanic ash.
A drop of 50c/kg (€10/lamb) has occurred since this day last week. This reduction was as fast as it was severe. My positivity of last Tuesday has been well and truly dampened.
I appreciate it is of little consolation to farmers with lambs to sell but we are still well ahead of the quotes of this week last year. However, this winter and spring have been extremely expensive and anything below the current quote of base 550c/kg is just not viable for the producer.
All the plants quoting are on the same 550c/kg plus the bonus. Moyvalley are not quoting as they will not be killing sheep until Wednesday.
Supplies are not overly plentiful but factory men are saying that there is, as yet, no great demand out there for the new season lamb and current numbers are more than adequate.
IFA's James Murphy has accused the factories of concerted moves to pull lamb prices. He said those moves were not justified by the market returns at the moment and that farmers were strongly resisting them and holding out for prices of 560-580c/kg.
The hoggets are steady, with an odd plant pulling quotes by 10c/kg. The two Kepaks are tops with their retained quote of 490c/kg plus the bonus. The two ICMs, Dawn Ballyhaunis and Kildare Chilling are on a base quote of 480c/kg plus 6c/kg.
Quality of supplies is coming to be a bit of an issue with some very plain and under-finished stock being offered. No one wins when this is happening. A few bags of meal could prove to be money well spent. However, there is a need to bargain here as I am aware of farmers getting between 500-510c/kg up to 23kg.