According to Sean Dennehy, lamb prices continue to strengthen this week (October 2021).
The IFA sheep chairman reported that factories are offering up to €6.60/kg for larger lots.
He said plants are paying €6.50 to €6.55/kg, with “some starting to talk” about additional weight allowances to 23kgs in the coming weeks.
He added that cull ewes are making €3.00 to €3.30/kg in general, with some pushing to €3.50/kg.
Lamb prices October 2021
Dennehy highlighted that lamb prices in the UK and France have also risen. In turn, he pointed out that this creates the opportunity for further strengthening of the trade here.
“Strong demand from store finishers is providing good competition to factory agents in the marts. It means farmers are under no pressure to sell lighter or under finished lambs to the factories.”
“Orderly marketing of lambs as they become fit is vital for farmers to maintain control of the trade and maximise factory prices. There will be no glut of lambs coming into the system.”
He advises farmers to “sell hard” in a “positive and strengthening” market environment.
Favourable and strengthening market conditions should be coming through in higher beef prices.
That is according to IFA livestock chairman, Brendan Golden, who reported that supplies of finished cattle are tight.
He said factories are “actively “offering various deals to secure numbers while “trying to hold back” on base price increases.
“The current base prices for steers and heifers of €4.20/kg and €4.25/kg, respectively, are lagging behind market returns and must move on.”
Golden outlined that demand for cull cows is “steady.” He added that P grades are still commanding €3.60/kg in some plants, and better-grading R and U grade cows are making up to €4.00/kg.
The kill to date this year is 70,000 down on 2020. Therefore, he said there will be 40,000 fewer cattle available to factories between now and Christmas based on the Bord Bia supply predictions for the year.
Read this full update.