Difficult week for lamb producers as prices slide

It has been another extremely difficult week for lamb producers as they watched their margins being further eroded in a price slide that has replicated returns to investors in the other stock market during June.

For the second consecutive week prices have tumbled. Last week the trade opened with prices going under 400 cents/kg for the first time this season.

A week later some processors were quoting 368 cents/kg. and the best base price on offer on Tuesday was 381 cents/kg at Kepak, Hacketstown.

The usual bonus of 6 cents/kg for U grade applies to all prices. In the marts the prices are back by €6-€7/head on last week with stronger numbers on offer not helping the trade. Prices have also being coming down in Britain over the past week.

Having commenced last week on a firm note, they came under pressure as the week progressed and finished dropping 10% for the week. In France the trade also started the week firm but weakened to 420 cents/kg delivered Paris before the end of the week and the weakening of prices in Britain could lead to an increase in the supply with concern for added pressure on prices.

In the marts there was a big sale of 1,000 head at Fermoy on Monday where prices were back €5-€7/head. Butchers lambs ranged E24 — €33 over €/kg and the factory lots made €20-€30 over. There was also a bigger entry of 1,250 head at Kilkenny on Monday where prices for all classes were back up to €6/head.

Prices for butchers lambs ranged €27- €34 over with factory lots making €24-€27 over.