Further boost to sheep trade as new export demand for ewes emerges

Photo Brian Farrell

Declan O'Brien

April 12 2021 01:17 PM

The emergence of an export trade for ewes has added fuel to an already ‘on fire’ trade for sheep.

Base prices for spring lamb and hoggets are already at record levels, with factories paying up to €8/kg plus bonuses for hoggets. The base price for spring lamb has hit €8.50/kg.

Demand for ewes in Britain and the Continent for Ramadan, which started yesterday, has resulted in heavy buying in western marts last week.

It is understood that live ewes are being shipped to Britain for slaughter, while exports to the Continent are being slaughtered at home.

Western mart managers reported a very strong trade for ewes, with prices topping €1.85/kg and working off of a minimum of €1.20/kg.

“A lot of the better-quality ewes are making over €190/hd and up to €200/hd,” one dealer told the Farming Independent.

While accurate figures are not available on the numbers of ewes being shipped, mart sources said agents for the exporters were cleaning out marts in the west and northwest over the last fortnight.

Meanwhile, store hogget buyers are making a margin of €40-70/hd on the back of the record prices being paid at the moment.

It is estimated that ‘long-keep’ buyers of stores that purchased stock at €70-80/hd last October stand to make a killing on their investment this year.

With hogget prices of €8/kg now being paid up to 24kgs, this is leaving a gross margin of €100-120/hd.

“Even allowing for meal costs, those long-keep store finishers stand to make from €40/hd up to €70/hd,” one industry source said.

The buoyant returns on the store trade will help underpin lamb prices generally for the remainder of the year, farmers predict.

“These store buyers will be back in the market competing strongly for lambs in the autumn when numbers are generally at their highest and prices at their weakest,” one farmer observed.

“Competition at that time of the year is a godsend, because it prevents the factories from cutting the ground from under prices,” he added.

Staying with sheep, IFA’s Sean Dennehy urged farmers to “sell hard” but to move stock as “they come fit”.

He said Ramadan and strong supermarket sales of lamb are continuing to drive the trade.

“Strong factory demand is feeding through to the mart sales where agents and wholesalers are competing strongly for the limited numbers of hoggets, lambs and cull ewes available. Prices are comparable to and in cases above what factories are offering some farmers,” Mr Dennehy said.