Butchers’ absence gives a monopoly to factory buyers

THE absence of the traditional butcher buyers around the mart pens has been cited as one of the main reasons for the lack of competition in the lamb trade, following nearly two weeks of price slumps in the trade.

Galway sheep farmers have been left reeling with a price drop of around €1 per kg. over the past week and a half at the meat plants – lambs are now down almost €20 a head from the mid-June prices.

Michael Murphy, Galway IFA Sheep Committee Chairman told the Farming Tribune that once the price fell below €5 per kg. for lambs at the factories, their production wasn’t viable anymore.

“Sadly there is a monopoly situation with the factories. Now nearly all of the butchers source their lamb from the factories which means that the competition just isn’t there anymore at the marts,” said Michael Murphy.

He said that the IFA were meeting with the meat plan bosses this week in an effort to put some kind of floor on the market but there were serious concerns over factories ‘profiteering’ at the expense of farmers.

“While prices traditionally do drop off during the month of June, the cut this year has been particularly severe – down from €5.50/€5.40 per kg. in mid-June to €4.50/kg. this week.

“The scale of this cut is really coming at a bad time in terms of confidence in the run-up to the breeding season. The price needs to come back up to the €5/kg. mark,” said Michael Murphy.

The market situation for lambs has also been affected by a lower than expected demand by live exporters in the run-up to the Ramadan Muslim observance season (June 18 to July 17) as well as increased movement of Spanish lambs into France. Live exports are expected to pick-up as Ramadan draws to a close in mid-July.

Sheep farmers also continue to be angry at the ongoing factories policy of not paying the ‘extra weight’ for lambs that are over the 18kg. to 21kg. category.

IFA National Sheep Committee Chairman, John Lynskey, said that sheep farmers were very dependent on lamb prices for their incomes.

“Many producers selling lambs to date have incurred high costs with meal feeding. It is of vital importance that lamb prices are stabilised and maintained at viable levels to maintain confidence in the sector,” said John Lynskey.

Loughrea Mart – similar to other marts across the county –reported a very disappointing lamb trade at their last sale with reduced factory quotes reflected in the mart trade.

“It’s a sad state when you can get more for a cull ewe than a good lamb,” said a Mart spokesman.

Gort Mart reported prices are well back with little demand from wholesalers and ‘no live exports’ as yet this year. €100 was tops for prices at the part with €85 to €95 a head reflecting the general run of the trade.