Anger at cuts in sheep prices
CUTS in sheep prices by the factories over recent weeks have been described as being ‘opportunistic and unnecessary’, by farming representatives.
According to the IFA and ICSA, there was no valid market reason for a cut in hogget prices over the past month.
However, towards the end of last week and early this week, there have been indications of a recovery in prices – probably brought about by the conclusion of the Ramadan Muslim period of fasting on this coming Sunday, March 30.
Over the course of the past month, price and weight cuts being implemented by the meat plants, has brought about a reduction of approximately €32 per head in the price of hoggets.
Galway IFA Sheep Rep, David Kelly from Mullagh, told the Farming Tribune that the recent cuts in hogget prices were ‘completely unjustified’ given the current strong demand for sheep meat both at home and abroad.
“This just seems to be an annual strategy that the factories adopt at this time of year – cutting the price and pulling back on the weight limits for hoggets.
“Over the past four weeks, hogget prices have slipped back by 40c to 50c a kg from around €9.20c-€9.30c/kg to €8.80/€8.0c/kg – given the market situation and the ending of Ramadan this weekend, those cuts should not have happened,” said David Kelly.
Chair of the ICSA Sheep Committee, Willie Shaw, said that the price and weight cuts during the month of March were costing sheep farmers approximately €32.50 per hogget. “Those who committed to feeding hoggets to heavier weights on the understanding they would be paid for up to 24kg have been left high and dry,” he said.
IFA Sheep Committee Chair, Adrian Gallagher, has also strongly criticised what he described as the shortsighted and unnecessary cuts factories had applied to hogget prices over the past number of weeks.
“We are approaching the peak demand period over the coming weeks with the end of Ramadan, followed by the Eid al-Fitr Muslim festival, and Easter Sunday coming on April 20th, when factories will have no choice but to secure hoggets to service important customers,” he said.
There were tentative signs this week of hogget prices beginning to edge up again towards the €8.80 to €9 per kg mark while cull ewes are holding solid on €5/kg.
Pictured: David Kelly: Price cuts unjustified.