MercoPress

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.

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 €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

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

The past financial year has seen a huge burst in export volumes, with Australian export numbers for red meat the highest on record at over 2 million tonnes. Lamb, mutton and goatmeat all had record high volumes, while beef exports matched the levels seen during 2019–20.

Lamb and mutton

Sheepmeat exports totalled 587,262 tonnes over FY24. This is 24% higher than FY23 and the highest on record. Exports lifted across the board, but the biggest increase was clearly seen in the Middle East and North Africa (MENA) region, where exports rose 76% to 125,088 tonnes. Lamb exports rose by 60%, while mutton exports doubled to 54,039 tonnes.

Lamb exports to the US rose 20% to 80,787 tonnes, while mutton exports to Malaysia rose 14% to 11,516 tonnes. The only major market that did not see substantial increases in export volume was China, where both mutton and lamb exports lifted 6% to 64,373 tonnes and 84,022 tonnes respectively.

Beef

Beef exports totalled 1.2 million tonnes over the financial year, a 29% increase from FY23 and a similar volume to 2019–20.

The biggest lift was in exports to North America, where numbers doubled to 343,034 tonnes. After a period of rapid destocking in the US cattle herd between 2018 and 2023, US slaughter has begun to decline. At the same time, demand has remained robust and the US dollar has strengthened, meaning that demand for Australian beef has lifted substantially.

Exports to Australia’s other major markets also recorded strong increases; exports to Japan rose 14% to 238,220 tonnes, exports to China rose 7% to 197,048 tonnes and exports to South Korea rose 8% to 191,270 tonnes.

Goatmeat

Australian goatmeat exports rose 63% over FY24 to 42,383 tonnes, the highest figure on record. Most of the increase in exports went to North America; exports to the USA rose 96% to 22,427 tonnes, and exports to Canada lifted 118% to 2,085 tonnes.

MLA 

Press Statement: Norman Bagley to spend more time with golf clubs.

After nearly 25 years of visionary leadership, Norman Bagley, the stalwart founder and driving force behind the Association of Independent Meat Suppliers (AIMS), is stepping back from his day-to-day role.

Since its inception in 2001, AIMS has grown to become the leading trade body representing the red and white meat sector and food service across the British Isles. This remarkable journey has been steered by Norman’s unparalleled expertise, unwavering dedication, and a passion for excellence that has set the standard in the industry.

Norman Bagley is a name synonymous with the meat industry. His robust views and deep understanding of the sector have earned him widespread respect and admiration. He has been the industry’s most prominent figure, advocating tirelessly for the interests of PLCs and independent meat suppliers.

Under his guidance, AIMS has achieved significant milestones, ensuring that the voices of small and medium enterprises are heard alongside those of large processing businesses and that standards across the industry are upheld.
As Norman transitions to focus more on his love for golf, his legacy within AIMS and the wider meat industry remains indelible. However, his departure from an active role does not mean a complete absence. Norman will continue to be a ready source of contacts, knowledge, guidance, and support for the new leadership. Norman will continue to be as accessible to individual members as he always has been.

With Norman’s shift in focus, AIMS is excited to announce the creation of a new role: Executive Director. This position is a unique opportunity for a dynamic and dedicated individual to build upon the solid foundation laid by Norman. The ideal candidate will bring fresh perspectives while maintaining the high standards and collaborative spirit for which AIMS is known.
AIMS invites applications from qualified individuals who are passionate about the meat industry and eager to drive it forward in this new era.
The Executive Director will have big shoes to fill but will also have the privilege of continuing a proud legacy of leadership and innovation.

For those ready to take on this challenging and rewarding role, AIMS is ready to welcome your application. Join us in continuing the legacy of excellence and innovation that Norman Bagley has so passionately built.
Expressions of interest should be sent to [email protected] by 5pm Wednesday 31st July.

Association of Independent Meat Suppliers (AIMS)

Key points

Prices for week ending 22 June 2024

• Average prime deadweight cattle prices were relatively steady in the latest week, as supplies reduced. Cows saw slight pressure in the overall average price despite lower kill.
• Conversely, new season lamb prices continued on their seasonal downturn, despite numbers falling from the week prior.

Cattle

GB deadweight prime cattle prices were steady-to-firmer in the latest week, as weekly numbers lowered. The average overall steer price lost just 0.1p to average 478p/kg, while heifers gained 0.2p to average 476p/kg over all carcase classifications in the sample. Young bulls meanwhile gained 1.5p overall to average 469p/kg.

The GB overall average deadweight cow price eased 1.2p to 359p/kg for the week ending 22 June, despite numbers being back slightly (300 head) on the week.

Estimated weekly prime kill lost 1,400 head to stand at 34,100 animals. This was driven primarily by fewer heifers processed. However, Defra figures show that for Jan-May, GB heifer kill has been above last year by 7%. This has contributed to a 3.7% rise in total GB prime cattle slaughter so far this year.

Increased domestic kill and greater levels of competitive imports have weighed on farmgate prices of late. However, on the demand side, latest data for the 12 weeks to 9 June shows relatively stable beef retail sales year-on-year (+0.1%). Growth in mince, sous vide and roasting are just outweighing declines in cuts like burgers & grills and stewing. While we are currently around the seasonal peak months for burger sales, the latest figures would suggest that volumes have recently slipped behind those recorded last year, with mince taking share, potentially due to the lacklustre weather of late. However, we await to see if the scorching temperatures over the past week have turned the tide.

Sheep

In the same reporting period, the GB deadweight new season SQQ averaged 780p/kg, down 31p from the previous week. Numbers were down 14% on the week before, following a spike in kill due to procurement for Eid-ul-Adha. Compared to the equivalent post-Eid weeks in 2023 and 2022, numbers were back considerably. As a result, the new season SQQ was up 145p when compared to the same week last year.

From a wider demand perspective, the latest Kantar retail figures from the 12 weeks to 9 June show total lamb volume sales were up 4.8% on the year. However, this data still includes the Easter period, which was very strong for promotional sales. More recent insight suggests sales have moved closer to last year’s levels, with steaks showing improved performance.

Elsewhere, lamb prices out of Rungis wholesale market in Paris have fallen into this week, suggesting a weakening in demand in some key export markets.

Hannah Clarke | AHDB

Quotes

Base quotes for hoggets from the major processors have tightened this week with base quotes of €8.80-€9.20/kg (+QA bonus) on offer. Small numbers of spring lambs have started to be processed in Irish processing plants with quotes of €9.10-9.20/kg (+QA bonus) available.

The tight supply situation has not been confined to Ireland, with hogget throughput in the UK so far this year operating five per cent behind 2023 levels with reports of significant numbers of ewe lambs previously set aside for breeding now being processed. The latest supply forecast for the EU has indicated a two per cent decline in throughput during the first half of 2024 which equates to a 580,000 head reduction in the sheep kill. Tighter supplies are expected until the 2024 lamb crop starts to come forward for processing in significant numbers.

Demand for lamb on both the domestic and export markets has shown some signs of recovery as indicated by Kantar figures and Bord Bia’s own market insights. However, while consideration for lamb has recorded some improvement in recent months lamb continues to be the most exposed to shifts in consumer buying habits as the highest priced protein.

 

Prices

Last weeks reported price increased to €8.63/kg, an increase of 3c/kg from the week previous. In the corresponding week in 2023 the reported price was €7.57/kg. The deadweight trade has also remained firm in the UK regions with reported spring lamb prices the equivalent of €9.60/kg (+5c/kg) in mainland GB last week while the reported price in Northern Ireland was €9.78/kg (+4c/kg) for w/e June 15th 2024. 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 €4.43/kg and €3.66/kg respectively last week.

 

Throughput

The total sheep kill in DAFM approved plants for week ending June 15th 2024 was 63,325 head, back marginally from the corresponding week in 2023. Throughput for the year to date has totalled 1,147,586 head, 10% behind the corresponding period in 2023. The hogget kill for the year to date has totalled 881,369 head, operating 8% behind 2023 levels. Meanwhile the ewe/ram kill year to date is back by 17,134 head (-13 %) to 105,988 head. Spring lambs have started to increase for processing with 155,714 processed so far this year.

Bord Bia

Cattle & Beef

Throughput: There were 29,653 cattle processed in DAFM approved plants during the week ending June 15th  2024, taking throughput for the year to date to 812,584 head. This is a 11,534 head or 2% increase on the corresponding period in 2023 when a total of 801,050 cattle were processed. There have been 560,851 prime cattle processed in the first 23 weeks of 2024, a 3% increase from the same period last year (+7,723 head). Cow throughput has remained strong with 189,745 cows processed so far this year, a notable increase of 17,809 head (+10%)

Prices: Base quotes this week are in the region of €5.10/kg – €5.15/kg for steers while starting quotes for heifers are around €5.15/kg-€5.20/kg. The trade for the smaller numbers of young bulls on offer remains steady with €5.40/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 €4.50/kg with €4.70-4.90c/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 8th 2024, the average price paid by Irish beef processors for R3 increased by 4c/kg to be €5.17/kg. This was 3c/kg behind the corresponding week in 2023 when the R3 steer price was €5.20/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:

European young bull prices have held relatively stable in the early weeks of 2024. The average reported price for R3 grading young bulls was €5.07/kg (excluding VAT) for the week ending June 8th 2024. This is the same as Week 24 last year. Tighter cattle supplies and firm demand have meant deadweight beef prices in the UK have remained strong. This week the average R3 steer price increased slightly by 1c/kg to be €5.68/kg (equivalent to £4.87/kg).

Bord Bia