Producers enjoy fruits of New Year price hike
High demand and stock shortages hold quotes
Published 05/01/2010 | 05:00
XFactoR had its 'Jedward'. Now, Irish farmers are about to have their own Jedward courtesy of the successes of Messrs Bryan and Downey in the recent IFA elections.
And farmers have definitely enjoyed some sort of an X Factor in the sheep trade over the past two months.
My own opinion on it is that the key driver to the significant and continuous rises in that period was the lively demand for live exports. Nothing can beat a bit of competition and the last couple of months has proved that beyond a shadow of a doubt.
When I did my first sheep report for last year the quotes varied from 345c/kg to 350c/kg plus the bonus. Today, thankfully, the quotes are up at 440c/kg to 450c/kg plus the bonus. This is, give or take, a euro/kg or €22/lamb.
Of course, the weather conditions over the Christmas season had a bearing as well with road conditions preventing a lot of farmers from travelling and as a result supplies remained very tight. Factories have been at their wit's end trying to secure adequate numbers to keep their customers satisfied.
There have been many reports of prices well above the quotes being paid, with 470c/kg to 475c/kg easily got last week around the country. I did hear on pretty sound authority that at least one factory paid as high as 490c/kg up to 22kg for a group of well-finished lambs in the second half of last week.
Most farmers have been negotiating prices and carcass weights that will return prices of €100+/lamb for their stock over the past few weeks.