QUALITY Meat Scotland (QMS) is reminding feeders and graziers to sell prime hoggs at the optimum weight and cleanliness to maximise margins during what seems likely to be a well-supplied domestic market in the coming weeks.
With the June census revealing the 2016 lamb crop was almost two per cent larger than 2015, there is the likelihood of a higher volume of hoggs to be marketed this year.
As the year advances towards April, there is typically an increase in the proportion of hoggs heavier than 45kg live-weight, and outside the standard quality quotation (SQQ), observed Stuart Ashworth, QMS head of economic services.
"In January heavy hoggs can make up more than 25 per cent of the auction offer, rising to more than 30 per cent of the offer as we reach April," said Mr Ashworth.
"This year the proportion of heavy hoggs is currently higher than for several years. These heavy sheep are heavily discounted on a pence per kg basis, but they often return the same income, if not margin, per head as hoggs in the more desirable retail specification of 40 to 45kg live-weight."
The volume of heavy hoggs and lambs can, however, act as a break on the SQQ price, he warned.
"In 2015 and 2016, the proportion of heavy hoggs in the auction offer was higher than the five-year average and began to exceed 30 per cent in March and April 2015 and 2016 when the SQQ price lost momentum," Mr Ashworth added.
The pressure which prime sheep prices have come under is in part due to a lift in the volume of hoggs coming forward and a general malaise in the wider European market.
Prices for heavy lambs have dipped 10 per cent since Christmas in France and 12 per cent in Spain. Light lamb prices across Europe are also under pressure with the main lamb producing countries - Spain, Italy and Greece - showing falls of up to 13 per cent since Christmas.
The weakness of Sterling has sheltered UK producers from some of that European price pressure leaving domestic prices 5 per cent lower than a year ago.
Market round-up
C&D Auction Marts Ltd sold 4703 prime hoggs in Longtown on Thursday to a top of £106 per head and 254p per kg to average 170.4p (-2.6p on the week).
The firm also had 3115 cast sheep forward when heavy ewes sold to £152 for a Texel and averaged £71.94 (+£2.11), while light ewes peaked at £64 for Cheviots and levelled at £35.06 (+£1.60). Rams sold to £118 for a Bluefaced Leicester and averaged £64.74.
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