Export weakness puts lamb returns under pressure

In contrast to the trade at the factories, mart sales in the early days of this week experienced a firm trade, with sellers feeling that the price slide of the past few weeks seems to have halted.

Processors continue to mount pressure on lamb prices at their factories, with a further reduction hitting returns to suppliers this week.

Some factories have imposed a further cut of at least 20c/kg, with the base ranging from 765-780c/kg across the country, plus the usual quality bonus of up to 20c/kg, adding up to 785-800c/kg for lambs with a carcass cut-off weight of 22kg.

Processors continue to blame the weakening export markets for Irish lamb and competition on the continent, which Irish finishers are finding has heavily eroded their returns over the past month.

In contrast to the trade at the factories, mart sales in the early days of this week experienced a firm trade, with sellers feeling that the price slide of the past few weeks seems to have halted.

All sales are experiencing larger entries, with auctioneers noting that the quality is good despite the scarcity of grass on many farms.

At Kilkenny, where there was an entry of 700 head, auctioneer George Candler noted that “lambs, especially wholesale and butcher types, were of top quality”.

However, the drought conditions in the southeast are not helping the store lamb trade, with no surplus grass on farms this autumn.

There was a top price of €205 for a pen of 13 butcher lambs weighing 61kg. A lot of five weighing 58kg made €203, and a pen of 26 weighing 54kg sold for €200.

A lot of seven weighing 56kg sold for €195 and a lot of 11 weighing 53kg sold for €194, while seven weighing 56kg made €195.