Factory prices for slaughter-fit lambs are lagging £10 to £20 behind local marts, as buying agents for Republic of Ireland-based (ROI) processors become increasingly active ringside.Prices of £145 to £160 are common place at marts this week, up £4 to £6 on last week due to a tightening in supply and increased buying competition.
Factory prices for slaughter-fit lambs are lagging £10 to £20 behind local marts, as buying agents for Republic of Ireland-based (ROI) processors become increasingly active ringside.
Prices of £145 to £160 are common place at marts this week, up £4 to £6 on last week due to a tightening in supply and increased buying competition.
While local factory quotes did rise by 5p to 10p/kg midweek, base prices of 595p and 600p/kg fall well short of the returns from selling live.
Deals are generally capped at 5p to 10p/kg above quotes for producer groups, making lambs worth £130 to £134 at the 22kg weight limit.
Given the extent of the price differential between selling direct for slaughter and the mart trade, there are reports of growing unrest among members of producer groups.
Independent sales
That frustration is not helped by reports of farmers selling independently on deals of 615p to 625p/kg and with an increase in carcase weight allowance to deter them from marketing lambs live.
Local plants have also limited lamb throughput in recent weeks to facilitate additional cattle processing, creating a backlog of lambs for some farmers.
According to mart managers, increasing numbers of farmers are now opting to bypass producer groups and sell live around the mart rings.
ROI prices
In ROI, lamb prices have increased by 10c/kg, with €7.45 to €7.50/kg commonplace.
However, with Irish plants paying to a 23kg deadweight limit, when converted back to a 22kg carcase as per NI plants, it equates to a sterling price in the region of 620p/kg.
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