Store lamb trade strong despite pressure on factory returns

Factory quotes for the lambs have been reduced by another 10c/kg at most of the processing centres in a continuation of the trend over recent weeks.

The tone of trade for lambs at the factories this week is further disappointment for the producers taking another cut in their returns.

Factory quotes for the lambs have been reduced by another 10c/kg at most of the processing centres in a continuation of the trend over recent weeks.

Quotes for this week range 750–760c/kg plus the bonus for quality assurance of 10–20c/kg. Interestingly those on the lower base are mostly paying the higher bonus which has a levelling effect on the take-home return at 770c/kg.

However, suppliers are reporting that 780c/kg is generally achievable for the larger numbers and to regular suppliers.

The factories are reported to be interested in getting reasonable numbers but pointing out that the easing of demand for lamb on the markets is resulting in weaker returns the result of which has to be passed on to the producers.

Throughput at the factories year to date is down by more than 300,000 head reflecting the decline in the breeding flock over recent years of poor returns.

Entries for the live sales at the marts are building to their seasonal peak being boosted by strong supplies of store lambs which are meeting with a very strong trade on finishers speculating on improved demand and prices later in the year.

There were 850 head on offer at Kilkenny on Monday where the prices were back by €3–€8/head.

Auctioneer George Candler reported: "A few more on offer this week but buyers of factory and butcher types more selective and looking for well-fleshed lambs with a preference for wethers rather than rams."

Butchers lambs sold for up to €143 over with a top price of €207 paid for a lot of five weighing 64kg, while 25 weighing 54kg sold for €204 and five at 73kg made €190 and the factory type sold for up to €124 over.