Lamb prices steady after heavy losses

Lamb prices were steadier over the past 24 hours after the heavy losses of the past two weeks, but the indicators are not signalling any immediate recovery in factory prices.

Prices have fallen by over 40 cents/kg (14p/lb) from a base of 409 cents/kg to 368 cents/kg which is being quoted by Dawn and Ballyhaunis, while the base price across the factories yesterday ranged 381-368 cents/kg.

The heavy fall in prices in recent days has been attributed to the weaker markets in Britain and France, with both markets lower in recent days.

Prices in Britain have fallen by 10% with stronger supplies coming to market through the end of last week and putting pressure on prices. Paris prices for top quality Irish lamb fell sharply over the later days of last week losing 30-40 cents/kg to sell around 420 cents/kg.

The weakening of prices in Britain has hit the market in France. Stronger supplies of British lamb available for export at competitive prices have put downward pressure on the French trade, which has reacted with lower prices for all suppliers.

While supplies in Britain remain strong, prices will struggle to show any recovery, and the lower domestic price in Britain will continue to benefit British exporters selling into France, where the Bord Bia promotion for Irish lamb is ongoing.

Irish lamb supplies to export plants are slightly higher than this time last year, at a weekly through- put of about 63,000 head.

Prospect for price recovery is dependent in the short term on increased demand in France or lower exports from Britain.

The Irish domestic market is continuing strong, but without a strong export trade, overall prices will continue under pressure.