Sheep prices fall again as factory pressure dents producer confidence

There is still a percentage of hoggets making up the weekly intake at the factories, and prices are equally under pressure at around 720–725c/kg this week.

It is another difficult week for producers as pressure on factory prices leads to a further cut in returns to suppliers, denting confidence in the sector.

Quotes for lambs are down by 20–25c/kg in general at a base of 820c/kg, plus the usual bonus for quality and a carcass cut-off weight of 21kg being applied. The quality bonus is worth 10–20c/kg for qualifying lambs, depending on the terms at the individual factory.

Suppliers are reporting that there is still reasonable demand for lambs at the factories and up to 840–850c/kg is being paid this week.

There is still a percentage of hoggets making up the weekly intake at the factories, and prices are equally under pressure at around 720–725c/kg this week. The continued pressure on the sector is hammering any confidence among producers.

One of the most experienced livestock auctioneers in the country, George Candler of Kilkenny Mart, summarised the environment in which the sector finds itself.

He said this week: “All prices could be described as disappointing for all lambs compared to last year. Quotes of €7.40 to €7.60 are back approximately €40/head compared to last year.”

He added: “We here in Kilkenny have seen a big decline in sheep sellers over the past two to four years, with many switching to dairy farming. The quotes at the moment would not encourage any new entries into sheep farming, especially when you compare prices for beef and dairy animals.” 

There were 450 head on offer at Kilkenny Mart on Monday, where prices were back by €4–€8/head on last week.

There was a top price of €206 paid by butchers for a pen of 10 weighing 53kg. A lot of six weighing 56kg made €200, while 20 weighing 55kg made €198 and 15 weighing 49kg sold for €176. Factory-type lambs sold for up to €124 over.