Things get ugly as factories put the squeeze on lamb prices
ICSA sheep chair John Brooks was in top form yesterday with some barbed comments directed at the processing sector as he discussed falling sheep prices.
"Ugly" was how he described the factories' continued downward pressure of lamb prices as quotes yesterday morning fell by another 20-40c/kg.
IFA sheep committee chairman Sean Dennehy added: "Sheep factories are taking advantage of the difficulties on farm at the moment with farmers off-loading lambs to reduce demand for grass."
He urged farmers "to strongly resist moves to push prices lower".
The reality at the moment is that he who pays the piper calls the tune- and yesterday morning that tune slipped a few octaves lower.
The spread of quotes for lamb was from €5.20-5.30/kg as factory bosses continued to claim back ground lost to them on the price front earlier in the year.
The biggest offenders in this "ugly" price war this week are Kildare Chilling as they drop their quote for lamb by 40c/kg to €5.20+10c/kg quality assurance.
Next worst are Kepak Athleague with their 30c/kg reduction leaving their lamb price on €5.20/kg. There is a rider to that €5.20; factory representatives informed me that that price was for "yesterday only".