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.

Bord Bia

Irish Cattle Trade & Prices w/e July 27th 2024

Cattle & Beef

Throughput

There were 32,858 cattle processed in DAFM approved plants during the week ending July 27th 2024, taking throughput for the year to date to 1,005,993 head. This is a +10,143 head or 2% increase on the corresponding period in 2023 when a total of 995,850 cattle were processed. There have been 715,952 prime cattle processed in the first 30 weeks of 2024, a 1% decrease from the same period last year (-2,155 head). Cow throughput has remained strong with 251,875 cows processed so far this year, a notable increase of 23,353 head (+9%)

Prices

There was a weakening in the base quotes at Irish meat plants this week. In general, producers were offered a base price of €4.95/kg for steers, while the starting quote for heifers consisted mostly of €5.00/kg. The trade for young bulls was also described as slightly slower, with prices of between €5.30/kg and €5.35/kg on-offer for R grading animals under 24 months of age.

The cow trade remains relatively steady, with well-fleshed O grading cows being offered prices of €4.40-4.60/kg, with a range of €4.70-4.80c/kg available for good quality R grading cows. A significant proportion of the cow kill have achieved a conformation score of P in recent months and the prices available for these animals vary significantly based on grade, weight and quality.

For the week ending July 27th 2024, the average price paid by Irish beef processors for R3 decreased by 4c/kg to be €5.02/kg. This remained 23c/kg ahead the corresponding week in 2023 when the R3 steer price was €4.79/kg. Note that reported prices exclude VAT but include all bonus payments such as in-spec bonus, breed-based producer groups etc.

EU and UK prices:

Across the EU, the average reported price for R3 grading young bulls was €5.04/kg (excluding VAT) for the week ending July 27th 2024. This is 28c higher than during Week 30 of last year when prices averaged €4.76/kg for this category.

In Britain, tighter cattle supplies and firm demand have meant deadweight beef prices have remained strong. This week the average UK R3 steer price remained the same to be €5.76/kg (equivalent to £4.91/kg).

Bord Bia

Australian cattle and sheep market wrap w/e 28th July 2024

Key points:

Sheep and lamb slaughter rose 8%, buoyed by processors coming back online after schedules closures.
Feeder steer prices lifted to numbers not seen since May 2023.
Sheep and lamb yardings eased by 25%.

Cattle market

The cattle market was positive once again, with all indicators bar the Processor Cow Indicator showing green. Yardings fell by 12,098 head to 59,393 – this is below the weekly average of 61,197 head.

Despite a dip in throughput, the Dairy Cow Indicator rose week-on-week to 245¢/kg liveweight (lwt). This is the highest price dairy cows have received since December 2022, with Victoria driving the prices up.

The national feeder steer price lifted again by 12¢ to 365¢/lg lwt. This price has not been seen since May 2023, indicating the market may be moving away from the price dips seen earlier this year. Following market trends and the rain, NSW prices drove the feeder steer price, coming in 20¢ above the national price at 385¢/kg lwt, with Dubbo leading at 395 ¢/kg lwt.

Sheep market

The sheep and lamb markets were mixed this week. Light lambs and trade lambs both lifted, with restockers remaining relatively flat, and a strong slip in the mutton, heavy lamb and Merino lamb markets.

Yardings fell 25%. Sheep yardings eased 25,664 head to 75,462, with lamb yardings easing by 57,535 head to 170,941. Combined yardings fell below the weekly average for 2024 with a decrease of 83,199 to 246,403. Mutton prices dipped week-on-week by 27¢ to 376¢/kg carcase weight (cwt). Following seasonal trends, supply dipped, falling by just under 20,000 to 54,086 head. Processor shutdowns and winter stalls have led to a break in supply.

The National Trade Lamb Indicator lifted 20¢ to 809¢/kg cwt. Along with a dip in supply, yardings eased by just under 7,000 to 34,186 head. NSW was the largest driver of the price shift, with most trade-ready lambs moving through Wagga, Forbes and Dubbo. Areas less impacted by dry conditions have been able to provide trade ready lambs later through the season.

Slaughter

Week ending 28 July 2024

Cattle slaughter dipped last week by 1,514 head to 139,788 processed. This has kept weekly slaughter above the weekly average for 2024. It also remains 15% above the year-to-date slaughter when compared to 2023. Tasmania was the only state where slaughter lifted, though only by 332 head to a total of 4,841. All states remained relatively flat, easing by less than 3% with totals as follows, SA (3,336), Queensland (72,782), Victoria (21,829), and NSW (34,349). WA saw the largest shift down, easing by 9% to 2,588 head processed over the week.

Lamb slaughter lifted by 6,802 head (2%). Despite the lift, lamb slaughter remained below the average weekly kill of 2024, but 21% above the year-to-date compared to 2023. Sheep slaughter lifted by 34% or 33,974 head on the previous week.

Combined slaughter lifted 8% to a total 568,918 head. This was buoyed by a 37% lift in NSW to 188,958, with plants coming back online. WA (35,366), SA (67,610) and Victoria (267,853) eased slightly on the previous week, by less than 2%. Queensland (1,402) and Tasmania (7,733) saw the most considerable throughput declines by 16% and 28% respectively.

MLA

Greece Bans Movement of Sheep and Goats to Contain “Goat Plague”

ATHENS, July 29 (Reuters) – Greece has implemented a ban on moving sheep and goats from their farms in an effort to contain a viral infection known as “goat plague” after new cases were detected over the weekend. The agriculture ministry announced the decision on Monday, highlighting the urgency of the situation.

The virus, also known as Peste des Petits Ruminants (PPR), does not affect humans but is highly contagious among goats and sheep, with a mortality rate of up to 70% for those infected. Georgios Stratakos, a senior agriculture ministry official, reported that approximately 8,000 animals have been culled and more than 200,000 tested, primarily in the central Thessaly region where the outbreak was first detected on July 11.

“Tightening the security measures across the country is deemed necessary for preventive reasons and is aimed at limiting the spread and eradicating the disease,” the ministry stated. PPR was first described in Ivory Coast in 1942 and has since spread globally. The United Nations Food and Agriculture Organization estimates that the disease results in losses of up to $2.1 billion worldwide each year.

The Greek government is taking all necessary steps to prevent further spread of the disease and protect the livestock industry.

Reuters

Brazil Halts Poultry Meat Shipments to China, Europe, and Argentina Due to Newcastle Disease

Brazilian authorities have halted all shipments of poultry meat to China, Europe, and Argentina following the detection of a case of Newcastle disease in the municipality of Anta Gorda, located in the State of Rio Grande do Sul[1]. The Ministry of Agriculture stated that the suspension of temporary certification is in line with international standards on trade in poultry and poultry products, ensuring transparency to the importing countries[1].

The suspension applies to the entire national territory for China, Argentina, and the European Union, encompassing poultry meat, fresh poultry meat, and its derivatives, eggs, meat for animal feed, poultry raw material for therapeutic purposes, meat preparations, and untreated blood products[1]. India, South Africa, and Mexico are also affected by the new restrictions[1].

Additionally, all production within 50 kilometres of the outbreak cannot be exported to Canada, South Korea, Israel, Japan, Mauritius, Morocco, Namibia, Pakistan, Tajikistan, and East Timor[1]. However, heat-treated products, such as thermo-processed, cooked, and processed products bound for Argentina, South Africa, Chile, the European Union, and Uruguay, are not subject to any restriction[1].

Agriculture Minister Carlos Favaro explained that a chicken tested positive for Newcastle disease, which affects the respiratory, nervous, and digestive systems[1]. The virus may have been introduced after a storm caused the collapse of a roof on a poultry house, exposing the chicken to the virus found in the faeces of infected wild birds[1]. Favaro assured that this appears to be an isolated case, with no signs of sick animals in the area or region[1].

Newcastle disease is highly transmissible among birds but does not affect humans. It was last detected in poultry in Brazil in 2006[1]. Suspension rules are reviewed daily based on ongoing negotiations with partner countries[1]. As a precaution, birds in Rio Grande do Sul will be culled[1]. The state is the third largest exporter of chicken meat in Brazil, with 354,000 tons exported in the first six months of the year[1].

[1]: MercoPress

References

[1] Exports of Brazilian poultry meat halted over sanitary concerns

MercoPress

Irish Sheep Trade & Prices w/e July 6th 2024

Quotes

Base quotes for hoggets from the major processors have tightened this week with base quotes of €7.00-€7.20/kg (+QA bonus) on offer. Prices have continued to come under pressure this week with reports of weaker demand from some major customers for Irish lamb.

Ireland exports approximately 85 per cent of the lamb produced in the country and the domestic deadweight trade is exposed to developments in supply and demand balances in our export markers. The weakening in deadweight prices is reflective of the more competitive landscape in our export markets with all of our key European export markets recording a reduction in lamb imports for the first four months of 2024 in both volume and value terms.

Spring lamb throughput this year is back by approximately a third from 2023 levels with poor weather conditions, a decline in the ewe flock and later lambing dates contributing to this trend. Current deadweight process are being maintained ahead of previous years due to a tighter availability of suitable sheep for slaughter, a trend that is also reflected in mainland Europe and also in Great Britain.

Prices
Last weeks reported price increased to €7.69/kg, a decrease of 35c/kg from the week previous. In the corresponding week in 2023 the reported price was €7.04/kg. The deadweight trade has also come under some downward pressure in the UK regions.

Reported spring lamb prices were the equivalent of €8.08/kg (-75c/kg) in mainland GB last week while the reported price in Northern Ireland was €7.29/kg (-62c/kg). Southern Hemisphere prices remain well below European prices which makes Southern Hemisphere product very competitive on EU markets, even with the extra costs of transport factored in.

Deadweight lamb prices in Australia and New Zealand were the equivalent of €5.08/kg and €3.70/kg respectively last week however have shown signs of increasing over the last month and narrowing the differential with European prices.

Throughput
The total sheep kill in DAFM approved plants for week ending July 9th 2024 was 48,386 head, back marginally from the corresponding week in 2023. Throughput for the year to date has totalled 1,289,879 head, 11% behind the corresponding period in 2023. The hogget kill for the year to date has totalled 890,682 head, operating 9% behind 2023 levels.

Meanwhile the ewe/ram kill year to date is back by 21,873 head (-15 %) to 123,544 head. Spring lambs have been increasingly coming forward for processing with 272,720 processed so far this 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.

Bord Bia

Irish Cattle Trade & Prices w/e July 6th 2024

Cattle & Beef

Throughput: There were 32,340 cattle processed in DAFM approved plants during the week ending July 6th 2024, taking throughput for the year to date to 907,685 head. This is a -8,459 head or 1% decrease on the corresponding period in 2023 when a total of 899,226 cattle were processed. There have been 646,296 prime cattle processed in the first 27 weeks of 2024, a <1% decrease from the same period last year (-401 head). Cow throughput has remained strong with 225,980 cows processed so far this year, a notable increase of 19,662 head (+10%)

Prices: There was a weakening in the base quotes at Irish meat plants this week. In general, producers were offered a base price of €5.05/kg for steers, while the starting quote for heifers consisted mostly of €5.10/kg. The trade for young bulls was also described as slightly slower, with prices of between €5.10/kg and €5.20/kg on-offer for R grading animals under 24 months of age. The cow trade remains relatively steady, with well-fleshed O grading cows being offered prices of €4.30-4.45/kg, with a range of €4.60-4.80c/kg available for good quality R grading cows. A significant proportion of the cow kill have achieved a conformation score of P in recent months and the prices available for these animals vary significantly based on grade, weight and quality.

For the week ending July 9th 2024, the average price paid by Irish beef processors for R3 decreased by 5c/kg to be €5.17/kg. This remained 23c/kg ahead the corresponding week in 2023 when the R3 steer price was €4.94/kg. Note that reported prices exclude VAT but include all bonus payments such as in-spec bonus, breed-based producer groups etc.

EU and UK prices:

Across the EU, the average reported price for R3 grading young bulls was €5.06/kg (excluding VAT) for the week ending July 9th 2024. This is 13c higher than during week 27 of last year when prices averaged €4.93/kg for this category.

In Britain, tighter cattle supplies and firm demand have meant deadweight beef prices have remained strong. This week the average UK R3 steer price increased slightly by 4c/kg to be €5.72/kg (equivalent to £4.81/kg).

Bord Bia

Brazil Sets New Beef Export Record in First Half of 2024

Brazil has established a new record in beef exports for the first half of 2024, shipping 1.29 million tons of animal protein. This represents a 27% increase compared to the same period in 2023, when 1.019 million tons were exported. Revenue also saw a significant rise, up 17% to US$ 5.69 billion[1].

The previous record was set in 2022, with beef exports totaling US$ 6.19 billion, according to the Ministry of Development, Industry, Commerce and Services (MDIC), and compiled by the Brazilian Association of Meat Exporting Industries (Abiec)[1].

In June 2024 alone, beef exports reached 220,184 tons, generating US$ 953 million. This result, as reported by Beef Point, was slightly lower than the record shipments documented in the previous two months[1].

The top importers of Brazilian beef were:

China: Imported 565,654 tons worth US$ 2.5 billion, reflecting a 10.2% growth in volume[1].
United Arab Emirates: Imported nearly 95,000 tons, an increase of 238% compared to the first half of 2023, amounting to US$ 435 million[1].
United States: Imported 85,395 tons, up 19.7%, generating US$ 515 million in revenue[1].
Hong Kong: Imported 61,000 tons, up 10.6%, totaling US$ 196 million[1].
Chile: Imported 48,726 tons, up 9.4%, totaling US$ 229 million[1].

Fresh beef exports, amounting to 1.13 million tons, represented 87.7% of Brazil’s total volume shipped. Most of this fresh beef was boneless, making up 88% of the total. Bone-in meat still faces limited access in some countries due to certificate requirements. The largest market for bone-in meat this year was Malaysia, with 2,168 tons, followed by Paraguay (1,542 tons), Morocco (905 tons), Angola (619 tons), and Singapore (467 tons)[1].

[1]: MercoPress

MercoPress

Irish Sheep Trade & Prices w/e June 29th 2024

Quotes

Base quotes for hoggets from the major processors have tightened this week with base quotes of €7.50-€7.70/kg (+QA bonus) on offer. Prices have continued to come under pressure this week with reports of weaker demand from some major customers for Irish lamb.

Prices

Last weeks reported price increased to €8.04/kg, a decrease of 20c/kg from the week previous. In the corresponding week in 2023 the reported price was €6.87/kg. The deadweight trade has also come under some downward pressure in the UK regions. Reported spring lamb prices were the equivalent of €8.83/kg (-40c/kg) in mainland GB last week while the reported price in Northern Ireland was €7.91/kg (-9c/kg). Southern Hemisphere prices remain well below European prices which makes Southern Hemisphere product very competitive on EU markets, even with the extra costs of transport factored in. Deadweight lamb prices in Australia and New Zealand were the equivalent of €4.64/kg and €3.68/kg respectively last week however have shown signs of increasing over the last month and narrowing the differential with European prices.

Throughput

The total sheep kill in DAFM approved plants for week ending June 29th2024 was 44,022 head, back marginally from the corresponding week in 2023. Throughput for the year to date has totalled 1,238,493 head, 11% behind the corresponding period in 2023. The hogget kill for the year to date has totalled 889,041 head, operating 8% behind 2023 levels. Meanwhile the ewe/ram kill year to date is back by 19,460 head (-14 %) to 119,152 head. Spring lambs have been increasingly coming forward for processing with 230,369 processed so far this 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.

Bord Bia

Irish Cattle Trade & Prices w/e June 29th 2024

Cattle & Beef

Throughput: There were 31,856 cattle processed in DAFM approved plants during the week ending June 29th 2024, taking throughput for the year to date to 875,327 head. This is a -8,851 head or 2% increase on the corresponding period in 2023 when a total of 866,476 cattle were processed. There have been 624,412 prime cattle processed in the first 26 weeks of 2024, a 1% increase from the same period last year (+2,998 head). Cow throughput has remained strong with 216,200 cows processed so far this year, a notable increase of 17,694 head (+9%)

Prices: Base quotes this week are in the region of €5.10/kg for steers while starting quotes for heifers are around €5.15/kg.The trade for the smaller numbers of young bulls on offer remains steady with €5.40/k-€5.45/kg available for R grading animals under 24 months of age.

The cow trade has remained solid. Well fleshed O grading cows are being quoted at €4.40/kg with €4.60-4.70c/kg available for good quality R grading cows. A significant proportion of the cow kill have achieved a conformation score of P in recent months and the prices available for these animals vary significantly based on grade, weight and quality.

For the week ending June 29th 2024, the average price paid by Irish beef processors for R3 steers, as recorded by DAFM, increased by 1c/kg to be €5.22/kg. This was 23c/kg ahead the corresponding week in 2023 when the R3 steer price was €4.99/kg. Note that reported prices exclude VAT but include all bonus payments such as in-spec bonus, breed-based producer groups etc.

Bord Bia