Strong Demand for Lamb Pushes Price Towards €7/kg
IFA Sheep Chairman Sean Dennehy said lamb price continues to rise as factories struggle to match supplies with market demand, increasing by 30c/kg over the week.
He said lambs are making €6.70/kg to €6.80/kg today, with weights of 22.5kgs and 23kgs offered. Higher deals are available for groups and larger lots. Cull ewes are making €3.00/kg to €3.30/kg in general.
Sean Dennehy said some lambs bought by factories are coming in at the equivalent of €6.90/kg, with farmers sights now on the €7.00/kg target.
“Good quality fleshed lambs are very scarce on the ground and factories are having to compete to secure supplies to meet the strong market demand for sheep meat,” he said.
The mart trade has also strengthened for all types of sheep with competition between factory agents, wholesalers and butchers with factory agents also competing for short keep stores to secure numbers.
Sean Dennehy said the strong store trade is ensuring farmers are under no pressure to off load lambs to factories that will take more feeding. This ensures the supply-demand balance remains very much in farmers’ favour.
The IFA Chairman said reduced volumes of sheep meat imports from outside the EU to our key export markets will underpin the trade for the remainder of the year.
Combined with the anticipated tight supplies of lamb, this will drive the trade over the coming weeks. Farmers should sell hard in this positive market environment, while moving lambs as they become fit to maximise returns.