Irish Sheep Trade & Prices w/e July 27th 2024
Quotes
Base quotes for spring lambs from the major processors have improved slightly this week with €6.90-€6.95/kg (+QA bonus) on offer. Relatively tight lamb supplies combined with some stability in demand from the domestic and export markets have contributed to this firming of the trade.
Tighter lamb supplies are also a feature in other key lamb producing regions of Europe and the UK with the latest Eurostat figures indicating a contraction in breeding flock numbers in many regions. The Irish ewe flock contracted by 3.7 per cent in the December 2023 census versus December 2022 levels. This decline in the ewe flock of 107,000 head is one factor contributing to the tightness in supplies currently.
Prices
Last weeks reported deadweight price firmed to €7.04/kg, an increase of 5c/kg from the week previous and reflective of the slight improvement recorded in quoted prices from the major lamb processors. In the corresponding week in 2023 the reported deadweight price was €6.53/kg.
The deadweight trade has also improved across the UK regions. Reported spring lamb prices held stable in mainland GB at the equivalent of €7.70/kg (+1c/kg) while in Northern Ireland there was a notable improvement in the trade to €6.96/kg (+31c/kg).
Relatively tight supplies of lamb for slaughter in Northern Ireland combined with competition from the live export trade to both mainland GB and ROI contributed to this firming in the trade.
Southern Hemisphere prices remain well below European prices however they have improved significantly over the last few weeks, narrowing the price differential with the EU. With a lead time on product shipments this recent improvement in deadweight prices should impact their competitiveness on EU markets in the medium to longer term.
Demand for Southern Hemisphere lamb in China has remained somewhat subdued in recent months however reports of stable demand in the Middle East and the US has helped redivert product away from key European markets.
Throughput
There was a marginal increase in the total sheep kill in DAFM approved plants last week to 47,624 head. However the kill continues to track lower than 2023 levels with 54,417 sheep processed in the corresponding week last year. This has been a feature of the 2024 lamb season to date with a smaller lamb crop, a difficult lambing and changeable grass growing conditions all impacting lamb availability for processing.
The spring lamb kill for for 2024 YTD totals 389,000 head, a decline of 85,000 head or 18 per cent from the same period last year. The supplies of spring lambs are expected to increase in the weeks ahead as more mid-season lambing flocks start to present lambs for processing.
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