"Unjustisified" cuts of 40-50c/kg for lamb

Processors have reduced their quotes for the lambs by up to 40-50c/kg for the second consecutive week of heavy reductions on the returns to suppliers.

The "backbone has been cut out of the lamb trade" by a second consecutive massive reduction of the prices being paid to the producers.

Processors have reduced their quotes for the lambs by up to 40-50c/kg for the second consecutive week of heavy reductions on the returns to suppliers.

Quoted lamb prices for this week are ranging from 680-700c/kg plus the usual bonus addition of 10-20c/kg for quality-assured lambs.

Suppliers to the factories are reporting that they are getting deals with the processors at 710-720c/kg with some larger producers securing up to 730c/kg by adopting a hard selling approach.

Producers are claiming that the scale of price cuts since the beginning of this month are completely unjustified and the processors are taking advantage of larger supplies coming available.

"The backbone has been cut out of the lamb trade, and it is going to have repercussions for the factories when more breeders quit because they can no longer get a margin over their input costs" was one reaction.

While some seasonal adjustments after the annual religious festivities celebrations were not unexpected, breeders have been shocked by the scale of the cuts over recent weeks.

The fear is that it will result in further decline in the breeding flock, which has suffered heavy depletion over recent years as land is diverted to alternative production.

On the positive side, prices at the live sales at the marts were steadier for the opening sales this week.

Kilkenny had an entry of 520 head for a much steadier trade in the aftermath of the massive drop last week.

Butchers paid up to €128 over for lambs with a top call of €180 for a pen of ten weighing 52kg. A lot of five weighing 50kg made €176 and thirteen scaling 54kg sold for €176. The factory type lots made up to €119 over.