Processors cut lamb prices

Marts: Yesterday was another bad day for the lamb trade with the processors cutting prices to producers by up to 17 cents/kg (6p/lb) in a move that was more severe than expected.

The trade opened on a steady note on Monday with quotes holding at last week’s level of base prices ranging 381-378 cents/kg (136p-135p/lb) and while there were some rumblings of clouds on the horizon for later in the week, producers did not believe any severe adjustment was in the offing and had not conditioned themselves for yesterday’s cuts in prices.

While some of the factories did hold Monday’s prices for the kill yesterday, they were in the minority. Base prices in general fell by anything up to 17 cents/kg (6p/lb) to range 381-364 cents/kg (136p-130p/lb) as France marked “Bastille Day” and the markets went into reverse.

Producers were slow to supply large numbers at the lower prices yesterday with many deferring selling in the hope that the blip will be short-lived and prices will recover quickly, which has created more interest in how prices will fare for today’s kill.

The lamb trade had been steady in France for Irish supplies through last week, although the prices were under some pressure with Irish lamb selling at 365-370 cents/kg, despite some benefit from lower supplies of Spanish lamb on the market in the south of France.

In Britain the trade improved through last week to finish with a gain of 15 cents/kg (5p/lb) equivalent at 398 cents/kg (142p/lb) equivalent. Supplies to the market in Britain were maintained at a steady level for the week.

Prices are now within the same range as the corresponding day last year and year-to-date averages are showing less than 1p/lb of a difference from an average of 394 cents/kg for year-to-date 2004 compared to 396 cents/kg for the corresponding period in 2003. Lamb supplies year-to-date are 7% higher than 2003.