Factories squeeze another 15-25c/kg off lamb prices
FACTORY quotes show yet another decline in prices as factory bosses continue to squeeze as much profit as they believe they can out of the sheep market.
This week’s fall is in the range of 15c/kg — as in the case of Kildare Chilling as they fall back from last week’s €5.15/kg plus 10c/kg bonus to an even €5.00/kg plus bonuses. However, Kepak Athleague cut its price by 25c/kg, leaving them on €4.90/kg plus 5c/kg bonus.
That still leaves both these plants well clear of Dawn Ballyhaunis, which is quoting €4.80/kg. The ICM plants are on 480/kg plus 10c/kg bonus, while Moyvalley quoted me a straight €4.90/kg.
Quotes for ewes stay largely unchanged at €2.70/kg, although Kepak do drop their quote from €2.75/kg plus 5c/kg bonus last week to €2.65/kg plus 5c this week.
Prices on the ground are running in the region of €5.10/kg for lamb, with ewes €2.80-3.00/kg. IFA’s John Lynskey says that with the Galway Festival on this week it is reasonable to expect that sheep numbers may tighten in the west.
John Brooks of ICSA is more technical in his analysis, saying: “Factories operate on contracts with supermarkets and other outlets — that gives them great security and insulates them from the effects of consumer sentiment or tastes swinging one way or another.”
While the last few weeks of price cuts have hit sheep farmers hard, don’t lose heart: remember, those two early Roscommon goals didn’t sink Mayo.