Sheep price update: supply and demand finely balanced

The dynamics of supply and demand remain finely balanced in the sheep trade.

Reports in recent days indicate that throughput continues to creep up gradually.

But while the sheep kill has increased slightly, the volume of sheepmeat produced from a given level of throughput is slightly below the average of recent years due to the lower average carcase weight of lambs and ewes.

Prices are unchanged, with a high percentage of lambs selling within a range of €7.20/kg to €7.30/kg.

Producer groups are securing prices of €7.35/kg to €7.40/kg or slightly higher for U grading lambs, with regular sellers with greater negotiating power securing similar.

Throughput is predicted to remain broadly the same in the coming days despite this week's National Ploughing Championships.

Store lambs

Mart throughput is being boosted by peak entries of store lambs. Reports indicate there is greater availability in sales this year.

Some farmers who would normally sell direct to the factory are marketing good-quality forward stores, while, at the other end of the quality spectrum, there are some lighter lambs showing the effects of a challenging year.

Demand is solid, with a high percentage of lowland store lambs selling from €2.90/kg to upwards of €3.30/kg.

At the top end of the market, batches including ewe lambs with breeding potential are trading to €3.50/kg and higher.

Plainer-quality stores with poor weight for age and crossbred types are selling back to €2.70/kg, with forward hill stores around the €2.40/kg to €2.60/kg mark and light Scottish Blackface lambs back to €2/kg and under.

Ewe trade

Getting back to the deadweight trade, ewe quotes range in the main from €3.60/kg to €3.80/kg.

Sellers with significant numbers are having some success securing 10c/kg to 20c/kg higher, while, at the top end of the market, plants such as Ballon Meats remain keen on top-quality ewes and are paying a significant premium up to €4.40/kg for choice lots.

A couple of plants also continue to differentiate on price for light-carcase ewes, with others penalising ewes with a poor cover of flesh to the tune of €1/kg and higher.

The mart trade is steady, although the very high prices witnessed a few weeks ago for heavy-carcase ewes are more infrequent.

Northern trade

The trade in Northern Ireland seems to be steadier following recent price reductions.

Base quotes are £5.90/kg in the main or the equivalent of €7/kg at Monday evening’s exchange rate of 84.3p to the euro.

Groups and regular sellers continue to secure 10p/kg higher, with agents working hard to curtail top prices to £6/kg.

Reports indicate that there has been lower competition over the last week from buyers from Britain sourcing sheep for direct slaughter. Significant numbers averaging over 2,000 head continue to be exported live under a breeding or fattening permit, while numbers exported from Northern Ireland to Ireland for direct slaughter appear firm at 6,000-plus head.