The silence of the sheep processors on prices is deafening

Chris Sweetman pictured moving his flock on his farm in Clonard, Balbriggan, Co Dublin last weekend. PHOTO: Damien Eagers

Chris Sweetman pictured moving his flock on his farm in Clonard, Balbriggan, Co Dublin last weekend. PHOTO: Damien Eagers

Chris Sweetman pictured moving his flock on his farm in Clonard, Balbriggan, Co Dublin last weekend. PHOTO: Damien Eagers

Martin Coughlan

April 19 2021 07:11 PM

As I set about writing this column yesterday two things happened: the first was Tottenham Hotspur sacked Jose Mourinho, and then the majority of the factories on our price table either withdrew their quotes or didn’t quote at all.

I can understand Spurs dispensing with the services of the now not so “special one” given his very poor performance, but for the majority of sheep factories to decide yesterday to offer no guidance on price is very surprising given the strength they had built into the trade over the last few months.

The one exception was Dawn Ballyhaunis who held their quotes yesterday at last week’s levels: spring lambs €7.90+10c/kg QA, hoggets €7.50+10c/kg QA and cull ewes €3.30/kg.

So what has happened in the last week to frighten the majority of our sheep processors into silence?

Speaking with several factory representatives I was told that the sales side of their businesses had hit a wall. The impression I was left with is the volume of sales has just gone off a cliff because consumers won’t pay what supermarkets are asking.

I find this curious.

Right up to last Saturday, factories were falling over themselves trying to get supplies either privately or through the mart system.

And as can be seen in the sheep marts’ figures, reports there was no fall-off in prices, especially for heavier stock, in Raphoe and Ennis yesterday.

Consumer sales

The comment about consumers not wanting to pay for lamb flies in the face of the fact that sales have never been so good. Why did factories pay up to €8.40/kg for lamb and €8 plus for hogget last week if they couldn’t sell it?

Sean McNamara, the ICSA’s sheep chair, commented that the issue has nothing to do with the price, but a lot to do with factories trying to get back control of their business.

“It’s a supply issue – the numbers of finished lambs are just not there and the factories know that. The fall-off in numbers coming from the north has really hurt them and that situation has now come home to roost,” he said.

Martin McNamara of Ennis Mart told me after his sale yesterday that one reason supplies have tightened so much is that the finishing of this year’s spring lamb crop is now at least three weeks behind where it should be. “Grass growth to finish lambs has been very badly stunted by the cold,” he said. This means the traditional overlap in numbers between hoggets and spring lambs hasn’t happened.

Another man I spoke with in the east of the country told me that in the past he has seen factories in the sheep and cattle trade create a surplus at times of scarcity. “You tell farmers you can’t sell into the market because sheep are too dear to buy and that you’ve no choice but to go onto a shorter working week,” is how this operates, he maintained.

Meanwhile, the latest Department of Agriculture figures show that the overall sheep kill for this year (to April 9) is back 56,054 on the same period last year – 636,808 versus

For now. the majority of sheep factory bosses are hunkered down working on their strategies while those with the sheep wait to see what they come up with.

Mart reports

Ennis
A well maintained trade saw the increase in the number of spring lambs offset by a fall in numbers of hoggets and cull ewes. Prices for the 55-76kg type hoggets steadied at €174-179/hd. Those increased spring lamb numbers saw samples from 40-46kgs average €184-188/hd. Samples on the cull ewe side included 103kgs at €170/hd, 87-88kgs €132-156/hd and 76kgs €161/hd.

Raphoe
Yesterday’s sale saw prices hold very well with the likes of 47kg spring lambs making €186/hd. Several groups at 45kgs sold to €184/kg. Among the lighter lots, 40kgs made €152/hd, with 41kgs seeing €154/hd. The top hogget price of €196/hd went to a batch averaging 62kg.

Carnew
This was a big sale with just over 2,500 sheep on offer. A new record of €208 was set on the cull ewe side as heavy culls sold from €155-208/hd with feeder types making from €90-140/hd. Strong demand for spring lamb saw samples reach €185/hd for 55kgs with fourteen 49kg lambs averaging €179/hd while fifteen at 45kgs made €177/hd. Hogget sales included eleven at 54kgs who averaged €181/hd.

Baltinglass
There was a strong trade, but prices cooled with averages back by €5-10/hd and more in places. Samples among the lambs saw seven at 55kgs averaging €158/hd, with six also averaging 55kgs selling for €143/hd.

Dowra
Spring lambs saw a top call of €191/hd for 50kgs, but the best overall average saw eleven 47kg lambs make €189/hd or €4.02/kg. The better 50kg+ hogget averaged from €3.60-3.82/kg or from around €183-191/hd.