14 Mar 2025
Irish Lamb Prices Drop Amid Tight Supplies and Stable Demand
Read full article
Market Overview
Irish lamb prices have seen a surprising dip in recent weeks, despite a backdrop of tight supply and consistent consumer demand. The trend has raised eyebrows across the meat trade, particularly among processors and exporters who expected firmer pricing heading into Q4.
According to industry sources, the average factory quote for spring lamb has softened by 10–15c/kg compared to early August, with base prices now hovering around €6.20/kg. This comes at a time when throughput remains constrained and flock numbers are under pressure due to weather-related challenges and rising input costs.
Supply Chain Pressures
Irish sheep farmers are grappling with several headwinds:
- Reduced lamb numbers due to lower birth rates and delayed finishing
- Weather volatility, especially in western counties, impacting grass growth and weight gain
- Labour shortages in processing plants, slowing kill rates and affecting throughput
Despite these constraints, the market has not responded with upward price pressure — a sign that demand, while stable, is not accelerating.
Demand Holding Steady
Domestic retail demand for lamb remains consistent, with strong support from independent butchers and premium outlets. However, export markets — particularly in continental Europe — have shown signs of caution.
Buyers in France and Germany are reportedly holding back amid economic uncertainty and currency fluctuations. This has led to a more cautious approach to forward contracts and spot buying.
Export Implications
The drop in prices could have mixed implications for Irish exporters:
- Short-term competitiveness may improve, especially in price-sensitive markets
- Margin pressure could increase for processors facing higher operating costs
- NZ lamb competition remains a factor, particularly in frozen categories
With New Zealand lamb continuing to enter the EU at competitive rates, Irish exporters may need to sharpen their value proposition — focusing on quality, traceability, and sustainability.
Outlook for Q4 2025
Looking ahead, industry analysts expect prices to stabilise if supply remains tight and demand holds. However, much will depend on:
- Kill volumes in September and October
- Export demand in key EU markets
- Retail promotions and seasonal buying patterns
Processors are advised to monitor carcass weights and grading closely, as mis-shapes and trimming issues could impact returns — especially in frozen formats.
