Farm Ireland

Monday 22 January 2018

Moyvalley stays firm at 485c/kg as lamb trade suffers slight dip


Joe Healy

The bad news is that there has been a slight dip in performance from the lamb trade. The good news is that this performance dip is closer to that of the Limerick hurlers and not nearly as bad as their Galway counterparts. We will be hoping for better luck at the races.

While one plant increased its quote by 5c/kg and two others held their ground, the other four have dropped quotes by 5c/kg. The 5c/kg increase is in the west, where Kepak Athleague is trying to tempt farmers away from the races at Ballybrit.

Although this move brings them up to a base of 475c/kg plus the bonus, it still only leaves them more or less on a par with Kildare Chilling, where the base quote of 470c/kg is helped by bonuses of 6c/kg and 5c/kg.

Pride of place, however, is reserved for Moyvalley, which remains on its all-in quote of 485c/kg for the third week running. Elsewhere, quotes from the ICM plants and Kepak Hacketstown have fallen by 5c/kg, to leave them and Dawn Ballyhaunis on a base quote of 470c/kg plus the bonus.

However, quotes are as much as 20-30c/kg lower than what factories are willing to -- and being forced to -- pay for lambs. The only lambs that are being sold at the quotes are from the farmers who do not even bother to ask the processor for a quote and those who just accept whatever they are offered. At a price difference of 20c/kg on a 22kg carcase, they are losing out to the tune of €4.40/lamb or €100 on 23 lambs.

IFA sheep chairman James Murphy said some plants were paying up to €5/kg to 22kg carcase weight to secure adequate supplies and prices of 485-495c/kg were commonplace. He added that buying for Ramadan should help top lift prices this week.

The two ICM plants and Kildare Chilling are top of the rankings for cull ewes at 270c/kg.

Kepak Hacketstown and Dawn Ballyhaunis are quoting 260c/kg, with Kepak Athleague a further 10c/kg back at 250c/kg. Moyvalley are offering a low 220c/kg.

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Meanwhile, Bord Bia reported that the sheep trade was maintained throughout the past week as supplies on the domestic market remain relatively tight and supplies in the UK continued to decline.

Quotes for spring lambs for most of the week remained unchanged at €4.75/kg, with reports of more being available. The cull trade remained firm with quotes typically in the range of €2.60-2.80/kg.

In the UK, despite supplies tightening, a weaker market demand resulted in a poorer lamb trade as the week progressed. By the weekend live market prices stood at the equivalent of €4.90/kg for new season lambs.

In France, trade eased somewhat in anticipation of the upcoming summer holiday period in the Paris region. Irish grade 1 spring lambs were reported to be making €5.10/kg by the end of the week. Demand is expected to pick up towards the end of the month due to the onset of the upcoming Ramadan festival.

Indo Farming