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Factory quotes for fat lambs are up 5p to 630p/kg with more reports of finishers paid to a 23kg carcase weight limit to prevent lambs moving to the Republic of Ireland (ROI) for slaughter.
Local plants have paid to a 22kg weight limit since late summer, in an attempt to keep prices in line with marts.
However, in recent weeks, the price gap has widened in favour of the live ring, as buying agents working for ROI abattoirs are much more active.
These buyers have had a competitive advantage, with Irish plants paying to 23kg and reports that deals are now being struck at 23.5kg.
Price gap
With Irish plants freely paying €7.90/kg, it puts slaughter fit lambs at €181 to €185. Allowing for VAT and exchange rates, this equates to 650p to 665p/kg at a 22kg deadweight limit.
To remain competitive, local plants are paying 640p to 650p/kg to 22kg, while those with greater negotiating power are securing deals to 23kg.
Outlook
There is growing optimism for positive prices to continue throughout the final weeks of 2024 and into 2025.
Supply forecasts from the Agriculture and Horticulture Development Board (AHDB) show total sheep meat production for 2024 will finish on 263,000/t, down 8% on last year.
AHDB also estimates the 2024 lamb crop is down 3.7% on last year with predictions of a further drop of 300,000 lamb births during spring 2025.
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