Prices for lamb drop by 20 cent/kg
It was hoped that the major promotion undertaken by Bord Bia at more than 1,000 retail outlets in France and Belgium would at least maintain the floor price for lambs in the short term, but the trend since Tuesday has dampened any confidence that was building up among producers.
With only a minority of the processors quoting for lambs yesterday the base price on offer to producers was 386 cent/kg (138p/lb) down from an opening price for the week of 406 cent/kg (145p/lb) on Monday last.
Prices fell steadily on Wednesday and Thursday and, although steady yesterday, failed to recover any of the drop.
Prices at the factories are now 23 cent/kg (8p/lb) lower than for the same week last year, continuing a very disappointing trend on return for producers in 2005 which has seen the average price year to date down 10% on the same period last year. Producers are complaining that the return has not been sufficient to cover their costs, which are increased from last year.
The Bord Bia promotion was launched in Paris over the weekend and was attended by key food buyers from the top French multiples as well as the major food service groups.
The campaign includes an on-pack offer for the first time, offering purchasers in more than 750 retail outlets the opportunity to benefit from discounted holiday breaks in hotels in Ireland and France. Research carried out by Bird Bia found that up to 70% of purchases are made on impulse and the on-pack offer is being tried to attract consumers.
The campaign is being supported by in-store tastings in hypermarkets in France and Belgium and is featuring clear identification of the Irish origin of the lamb.
