Factories cut lamb quotes by up to 25c/kg

Processors have reduced their prices for lambs by 20-25c/kg as demand slips back following the ending of the Muslim Eid al-Adha festival celebrations last weekend.

The seasonal easing of lamb prices, post the Muslim celebrations, has kicked into place this week at the factories.

Processors have reduced their prices for lambs by 20-25c/kg as demand slips back following the ending of the Eid al-Adha festival celebrations last weekend, which had contributed a boost to demand and prices over recent weeks leading up to the festival.

New-season lamb is being quoted on a base of 950c/kg at the factories this week, with quality assurance adding 10-20c/kg as applicable.

Suppliers are reporting that demand at the processing plants remains positive, and regular suppliers and those with larger numbers to offer are getting up to 980c/kg.

There is still considerable reliance by processors on hoggets to fulfil factory requirements, but they have also been impacted by the pressure on prices, with the base being cut to 900c/kg plus the QA bonus.

The new-season lamb supply has continued to rise week by week, reducing the dependence on hoggets to 25-30% of intake and phasing them out over the coming weeks as the changeover is completed.

Producers are hopeful the start of the summer holiday season will create enough demand to stabilise prices over the coming weeks.

Prices at live sales in the marts eased by €6-10/head over the latter days of last week.

Some of the regular Monday sheep sales did not take place this week due to the bank holiday.

Supply is expected to be tight over the coming months and producers are hoping demand will ensure the underpinning of floor prices.