Hogget prices make strong gains
Scarce supplies in Ireland and Britain, together with improved demand in France, has led to an increase in demand for stronger intake at the factories to take advantage of the improved trading conditions on the continent.
Base prices at the factories, which opened 9 cents/kg higher on Monday, saw further gains of 5 cents/kg yesterday as prices lifted to a base line of 358 cents/kg (128p/lb), their highest for the year to date.
A drop in throughput at the Irish factories, which has dropped to a weekly 26,500 hoggets, has been matched by a similar trend in Britain leading to a decline in volume going on to the French market.
The reduction in supplies to both factories and live sales in Britain has been substantial, which has led to an increase equivalent to 15-25 cents/kg at the factories, lifting the factory price to the equivalent of 360 cents/kg, and a rise of around e2/head equivalent at the live sales.
Stronger demand in France led to a lift in prices to 380 cents/kg delivered, contributed to by the lower level of supplies from both Ireland and Britain. French producers are benefiting from a 15% increase in the average year to date return, in contrast to producers in Ireland and Britain who are taking up to 8% less than for the first two months of 2005.
On the outlook, there is a reasonable level of optimism in the trade that prices should hold up over the coming weeks - they are 10-14 cents/kg lower than this time last year - with demand holding firm and new season spring lambs not expected to become available for at least a month.
