Further factory cuts deepen pressure on hogget prices

Processors are offering a base of 745–750c/kg for hoggets this week, plus the usual quality assurance bonus of 10–20c/kg for qualifying supplies.

There is no relenting of downward pressure on hogget prices at factories, with a further cut to producer returns this week.

Waning confidence in the sector has been further undermined by another reduction of 10c/kg for hoggets at processing plants.

Processors are blaming weaker export market returns to justify the continued downward pressure on prices, but the ongoing weekly reductions are being described as a “killer” of remaining confidence among breeders.

Returns to producers are down by 120–150c/kg on a year ago, which is having a major impact on margins for producers who have stayed with a sector that has suffered serious decline in recent years.

Processors are offering a base of 745–750c/kg for hoggets this week, plus the usual quality assurance bonus of 10–20c/kg for qualifying supplies.

There was some weakening of trade at factories during the latter days of last week, but the full impact is being felt with lower quotes following the resumption of slaughtering on Tuesday after the long weekend.

Some of the blame is being pointed at the UK market, where prices have dropped by up to 25p/kg in recent weeks due to weaker consumer demand, with a knock-on effect on the Irish market.

Due to the bank holiday here in Ireland on Monday, some regular live sales were not held this week.

However, prices in the live trade remained relatively stable through last week, with most centres holding close to previous week levels.