Factory agents remain very active for lambs but have taken steps to try and put a lid on the trade. All export plants are quoting a base of €4.60/kg with Kepak Athleague and Dawn Meats easing base quotes by 10c/kg on last week’s levels. Moyvalley and Ballon Meats are quoting an all-in quote of €4.70/kg and €4.80/kg respectively.

With last week’s lamb kill increasing but running at just 44,235 lambs, over 11,000 head behind the same week in 2015, factories are still being forced to pay well above the quoted prices to get lambs.

Some sellers operating at the top end of the market secured a price of €4.95/kg to €5.00/kg at the end of last week.

This has been harder to secure as the week progresses but frequent sellers were still securing €4.85/kg to €4.90/kg yesterday (Wednesday) with top prices for today (Thursday) ranging between plants from €4.80/kg to €4.90/kg. Occasional sellers with smaller numbers are negotiating €4.70/kg to €4.75/kg with some plants offering a 5c/kg bonus for quality assured lambs.

While on the face of it, the yearly kill is running 23,502 sheep ahead of 2015 levels, the lamb kill is running over 55,000 head behind with a higher hogget kill early in the year and greater ewe and ram slaughterings still impacting on annual throughput. Another element adding to tight supplies is poorer kill-out and lower carcase weights.

A similar situation is evident in Northern Ireland with demand holding strong and agents purchasing for southern plants remaining very active.

The number of sheep imported south for direct slaughter last week was 6,566 with the number imported since the middle of May running over 20,000 ahead of 2015 levels. This means the lamb kill in southern plants is running even greater than 55,000 head behind last year’s levels.

Prices in northern plants are holding steady although there are some procurement managers talking the trade back. Quotes range from £3.85/kg to £3.90/kg and with sterling averaging 86-87p to the euro in recent days, this equates to €4.67/kg to €4.72/kg including VAT. Prices as high as £4.00/kg has been secured by farmers with greater negotiating power in recent days.

Live exports

There is some live export demand ahead of the upcoming Muslim festival Eid al-Adha which takes place on 10 and 11 September. Prices quoted range from €2.20/kg to €2.35/kg with buyers at present preferring to purchase direct from farms.

Ewe trade

Ewe quotes range from €2.30/kg to €2.40/kg. Demand is variable between plants with top prices of €2.50/kg quoted. There is firm demand in mart sales for heavy fleshed ewes which may be a better alternative where farmers are meeting price resistance.