Lamb trade: Mixed trade at factories this week with prices of up to 690 cents/kg
Lambs are experiencing a very mixed trade at factories this week, with the prices apparently dependent on the balance between supply and demand at the particular location. Picture: Dan Linehan
Lambs are experiencing a very mixed trade at factories this week, with the prices apparently dependent on the balance between supply and demand at the particular location.
There was a surge in demand for lambs at some factories for the second half of last week, with suppliers securing a reversal of some of the recent cuts in prices.
As processing commenced on Monday, there was generally less momentum to the trade, with some of the processors knocking up to 20 cents/kg off their quotes to bring the base down to 640-650 cents/kg. The usual bonus for quality at 10 cents/kg applies as applicable.
There are mixed reports as to the effect on demand from the catering sector following the lifting of the Covid-19 restrictions. Suppliers are reporting that factories are paying up to 690 cents/kg to get lambs where supplies are tight and they are under pressure to fill orders.
There have been mentions of 700 cents/kg being secured in special deals, although in general, it is hard to get.
However, there was strong competition between butchers and factory agents for small entries on offer at the live sales on Monday.
There was a small sale of 200 head at Kilkenny Mart on Monday, where the trade was well improved on last week.
Butchers paid up to €101 over for the hoggets, with a top call of €156 for a pen of 10 weighing 55kgs.
A pen of 12 weighing 54kg sold for €155, a pen of eight weighing 53kg made €152 and a pen of 20 weighing 52kg sold for €152.
There was only a marginal difference for the factory type lots, which sold for up to €98 over.
IFA sheep chairman Sean Dennehy said he expected the full reopening of the foodservice sector to drive domestic demand for lamb and sheep meat over the coming weeks.
Mr Dennehy explained the domestic food service sector is a key outlet for lamb.
“Lamb numbers are extremely tight. With good weather, farmers are under no pressure to sell and factories are struggling to get supplies to meet the market demand,” he said.
He also called for processors to stop cutting prices for overweight lambs.
“The mart trade for these lambs is much better than what factories are offering and farmers should consider the most appropriate outlet for the lambs they have,” he said.
