While sheep prices may have eased slightly in recent weeks, 2021 will be regarded as a positive year for global sheepmeat markets.

Prices recorded by Bord Bia in early December in major players on the global sheepmeat market were running upwards of €2/kg higher than the corresponding period in 2020.

British prices are recording the highest increase of €2.08/kg. Production in Britain is running in the region of 10% lower than in 2020 while imports from New Zealand are also significantly lower, with these two factors underpinning higher farmgate returns.

Spain is also enjoying a period of buoyant market performance. With prices running €1.91/kg above 2020 levels, it is among the highest in Europe at €7.83/kg.

French prices of €7.96/kg are the highest on the selected list but in contrast they have recorded the lowest year-on-year increase of 75c/kg, showing that there is an upper price limit which the market can sustain.

Irish prices were recorded at €7.09/kg in the week ending 11 December or €7.49/kg including VAT. Prices have eased back by 10c/kg to 20c/kg since then. This week’s trade is relatively quiet, with factories operating at lower capacity. The trade did increase by 5c/kg to 10c/kg in cases on last week’s levels. Kildare Chilling quoting €7.10/kg plus their 10c/kg QA bonus.

Prices at the lower end of the market range from €7.00/kg to €7.15/kg, with regular sellers, groups and specialist finishers trading from €7.25/kg to €7.35/kg on average and select deals above this level. There are signs of numbers being tighter than in the runup to Christmas.

Base quotes in Northern Ireland are in the region of £5.60/kg, with regular sellers securing returns of £5.70/kg to £5.80/kg (€6.70/kg to €6.80/kg).