Lamb prices lose up to 15c/kg

Marts: Lamb producers are experiencing another difficult week with the fall in prices being offered by the factories continuing to erode their margins.

Quoted prices for lambs have dropped 10-15c/kg (4p-5p/lb), with the downward trend now damaging both the returns and future confidence in lamb production.

Yesterday, the factories were offering base prices ranging 380-375c/kg (135p-134p/lb), with the usual bonus of 6c/kg (2p/lb) for quality lambs.

The supply of lambs to the factories is holding relatively steady at around 45,000 head per week, 20% down on corresponding weeks in 2007.

There is a strong supply of lambs on the continental markets, where demand has eased and prices are reflecting the oversupply to a weaker market.

In Britain, prices have been easing back to the equivalent of 360c/kg including vat, after losing up to 25c/kg over recent days. The strong supply of lambs available in Britain is not helping the trade and is also contributing to the weaker trade being experienced by exporters to the French market.

Demand in France has slowed. Supplies from the UK are both plentiful and very competitively priced.

Supplies are also coming from New Zealand and adding to the competition being experienced by the Irish suppliers. Prices have dropped by up to 20c/kg. Irish lamb is selling in the range 400-410c/kg.

In the marts there is good demand for the butcher’s lambs which continue to lead the trade. Demand was strong for the butcher’s lambs at Fermoy mart. where there was a smaller sale of 400 head.

The butcher’s lambs sold for €90/head to €120/head, which was equivalent to €38 over to €65 over. The factory lambs sold for €55/head to €83/head or €20 over to €35 over.

Prices were weaker at Kanturk Mart yesterday.

Butcher’s lambs sold for €32 over to €39 over with the factory lambs making €22 over to €28 over.

Yesterday’s sale at Blessington showed an improvement of €1-2/head.