Sheep producers continue to trade into a much livelier market. Factory agents are keen to maintain high levels of throughput, with the weekly kill running in excess of 60,000 head for the last four weeks.

The fact that prices have strengthened during this period and remain solid shows the strength of demand.

Quotes are largely unchanged on last week’s levels.

Kildare Chilling remains top with its base of €5.40/kg plus 10c/kg quality assurance (QA) bonus.

Kepak has added 5c/kg on to its base, bringing it to €5.35/kg, along with its higher QA bonus of 15c/kg. The two Irish Country Meats plants remain at €5.30/kg plus 10c/kg QA, while Ballon is quoting 550c/kg all in.

Higher returns

Farmers handling significant numbers or trading through producer groups are pushing returns to €5.55/kg to €5.65/kg, with select deals negotiated at a higher level when transport costs are taken into account.

The highlight of the trade remains the appetite from agents looking to source lambs in direct farm sales or through the mart ring.

Agents have been particularly active in mart sales and continue to drop well down in the weights to get lambs. Managers report agents purchasing significant numbers of lambs in the 38kg to 42kg bracket that would normally be purchased by store lamb finishers.

This is having a number of benefits – it is taking higher numbers out of the system and leaving factories hungry for lambs, with the average carcase weight of lambs slaughtered running significantly lower.

IFA national sheep chair Sean Dennehy said: “The lamb trade is a lot stronger this week, with factories having to increase quotes and prices and paying 30c to 35c/kg over quoted prices to get stock. Top weights have also increased to 21.5kg in the last few days and sellers should take advantage of demand and ensure they are negotiating maximum returns.”

Northern plants have increased quotes to ward off interest from southern buyers

Agents supplying southern plants have also been very active in northern sales in the last week. The number of sheep imported for direct slaughter increased by 1,109 head last week to reach 7,871. Northern plants have increased quotes to ward off interest from southern buyers, with quotes for Thursday at £4.70/kg, equivalent of €5.19/kg at 90.5p to the euro and €5.47/kg with VAT included at 5.4%. Top prices are running 5p/kg to 10p/kg higher, while prices in Britain continue to range from £4.90/kg to £5.00/kg (€5.41/kg to €5.52/kg and €5.71/kg to €5.82/kg incl VAT).

Prices in the south are running 40c/kg to 60c/kg ahead of the corresponding week in 2019, with prices running at their highest level for the month of July for more than five years.

The outlook remains positive, with live export buyers also entering the market and starting to source lamb for the Muslim Eid al-Adha festival, which takes place from the evening of Thursday 30 June to Monday 3 August.

Buyers in Northern Ireland and the UK are also reported as beginning to put orders together for the festival.

British prices are also running at their highest level in over five years, while Northern farmers are benefitting most from the strength of the trade with prices running as high as 70p/kg to 80p/kg ahead of the corresponding period in 2019.