Lamb prices drop sharply

LAMB prices are continuing to ease back with weaker trade at factories and marts undermining the boost that resulted from the most recent outbreaks of foot and mouth in Britain.

Up to 30c/kg (11p/lb) has been wiped of the prices for lambs at the factories and prices at the marts are down by up to €13/head with the ease continuing.

There has been a surge in supplies to the factories and the numbers on offer at the live sales at the marts have rocketed as producers responded to the demand to take advantage of the higher prices on offer.

The trade has been affected by low demand for lamb in France where consumers have shown strong resistance to the higher prices leading to a drop in consumption. The consequences has been a drop of up to 50c/kg (18p/lb) in returns for Irish lamb with the volumes being sold relatively small.

In the absence of British supplies — which are restricted from export due to the controls in place over the most recent outbreaks of foot and mouth — Grade 1 Irish lamb had increased to 510c/kg, but has now eased back to trade at 460-470c/kg as demand dropped off sharply.

The decline has been reflected in the prices on offer to producers at the Irish factories which slipped to 390c-400c/kg (139p-143p/lb) yesterday.

Supplies to the factories had risen sharply following the rise in prices last week and the processors are still getting strong supplies with producers fearing a continuation of the decline.

At the marts there was a very large sale of 1,200 head at Fermoy Mart, where the trade was steady, but prices were back sharply, losing up to €13/head at a peak of €36 over for the best of the butchers’ lambs. Prices ranged €78-€90/head or €28-€36 over. The factory lots sold for €50/head to €74/head or €16 over to €25 over.

There was 1,800 head on offer at Kilkenny Mart where prices were back at least €10/head. Butchers’ lambs sold for €32 over to €40 over and factory lots made €28-€40 over.