Prices continue to creep in as supplies run low

Last week I reported that factories were urging farmers not to stick with lamb when they were being offered €8/kg and there was no major event on the horizon to raise prices.

A sheep farmer called me Tuesday morning and wanted to know why I’m not campaigning for higher prices as supplies are running low.

My motto has always been, if your sheep are fit, do your research, get the best price you can, and try not to give the factories free meat.

My caller is right about the numbers, however, as Hogget supplies are running out fast.

However, there still has to be a stock worth killing as Dawn cites Ballyhaunis Hogget at €7.10 +10c/kg quality assurance after leaving her Hogget price box empty last week.

Either that or at €7.10/kg their markets can handle it more easily than lamb at €7.90/kg.

Kildare Chilling raised their offer for Hogget by 10 cents/kg to €7.20 + 10 cents/kg quality assurance, while the ICM mills decided not to bid. They may want to see if the numbers in their areas are as low as reported.

The feeling on the ground is that numbers are tight on all fronts.

Department figures for the week ended May 8 show the total number of sheep killed up to that date increased 17 percent to 946,340 compared to the same period for 2021. This week’s kill is 47,423, up 2,488 from the same week 12 months ago.

With kill numbers still high, a definite element of additional competition is creeping into the trade as factories struggle to supply the market despite claiming that supply and market demand are in balance.

Why else would the ICM-Werke increase their offer on feathers by 5ct/kg to €7.95 + 10ct/kg and Kildare add 10ct/kg to €8.10 + 10ct/kg along with their increased offer for hogget?

However, club sheep prices remain stable with both Dawn and Kildare remaining at €3.70/kg and the two ICM mills at €3.80/kg.

IFA Sheep Chair Kevin Comiskey said the reduction in stocks of hoggets has underpinned the spring lamb trade as mills are actively scrambling for supplies.

He said that good quality hoggets fetch €7.50/kg and as the numbers go down the demand for spring lamb is increasing at all factories.

Mr Comiskey said the number of spring lambs available is extremely tight, down almost 10,000 from last year’s level, pushing factories to offer bids for weights up to 20.5kg with prices at €8.40/kg.

He insisted spring lamb prices need to keep rising to reflect input costs to sheep farms and factories need to be more flexible on weight.

He added that demand for mace sheep is also very strong, with factories paying prices of €4.00/kg and up. He urged farmers to hard sell while moving hoggets and lambs as they get fit.

Around the markets

Loughrea

A smaller sell-off than last, with average spring lamb prices up €5/h.

Samples included 44.8 kg at €174/hr, 42 kg at €163/hr, 50 kg at €172/hr and 48 kg at 173 €/h

James Cooney noted that the Hogget numbers quickly dried up. A 50kg Charolais was selling for up to €170/hour while a 60kg Mountain Cross Suffolk was selling for €165/hour.

In the culled ewes, the top call saw at 101 kg earns €213/h while the general run brings in €165-175/h.

Blessington

Heavy hoggets and spring lambs both improved by €5-7/hour: feathers brought €110-122/hour over €/kg or €155-169/hour.

Heavy Hoggets sell for $100-116/hour to $150-167/hour.

Heavy culling sheep fetched €170-210/hour, lighter lots €100-166/hour.

Ewes with lambs on foot made €160-250/unit.

Mountbellew