Sheep producers have started another week facing sustained price pressure, with factory quotes falling by another 10c/kg to 20c/kg.

This leaves base quotes ranging from €6.30/kg to €6.40/kg in plants quoting, with Kildare Chilling not quoting for lambs for Tuesday’s kill.

The drop in base quotes leaves groups and regular sellers operating on a price of €6.60/kg to €6.65/kg, while individual sellers with lower negotiating power are typically trading in the region of €6.50/kg.

Factories are keen for good-quality, fleshed lambs and this is helping the bargaining position of producers with such stock.

Sub-optimum fat scores

Factory agents report that an increasing number of lambs are killing at a lighter carcase weight and sub-optimum fat score.

It is expected when lamb prices are following a steep downward trajectory that there will be a higher percentage of lambs drafted at lighter carcase weights as producers try to reduce their exposure.

However, the current situation is reported as being far more excessive than the norm, with the effects of the prolonged period of inclement weather starting to show in terms of slaughter performance.

A number of plants are enforcing significant cuts for lambs delivering carcase weights below 16kg to 17kg and lacking flesh, with cuts of €1/kg reported for fat score 1 lambs in many plants.

The kill-out of lambs lacking flesh has been reported as low as 38% to 40% in recent days, with typical kill-out rates 1% to 3% below normal.

Lambs with a good cover of flesh are reported as killing in the region of 45% to 46%, with young intensively finished lambs up to 48% to 49%, but numbers at this level are small.

Mart trade

The low supplies of well-fleshed and heavier lambs is very visible in mart sales. Competition is high for top-quality lambs, with prices well above equivalent factory returns. This is apparent in sales held countrywide on Monday as reported below.

Athenry Mart

The number of lambs weighing upwards of 50kg has been well below normal levels. There were a dozen batches of lambs weighing upwards of 49kg and selling in the main from €149 to €155.

A top price of €158 was paid for top-quality lambs weighing 54kg.

A wider differential is opening up between lambs with a varying level of fat cover, with lots weighing 49kg to 52kg but with a poorer cover of flesh back to €140 to €143/head.

Lambs weighing 46kg to 47kg sold from €137 to €144, with good-quality lambs present in this weight range.

Prices for lambs weighing 44kg to 45kg started as low as €125 to €128 for average-quality types, rising to €136 to €138 for fleshed lots, while lambs weighing 42kg to 43kg sold from €112 to as high as €129 to €134.

Kilkenny Mart

Kilkenny Mart has been enjoying a period of strong competition between butcher and wholesale buyers.

Supplies of heavy, fleshed lambs are reducing by the week and this has helped to keep a floor under the trade.

Prices for top-quality lambs weighing upwards of 50kg were recorded at a range from €160 to a top of €177 for a batch of eight lambs weighing 55kg.

The trade for factory-weight lambs was more challenging, with prices for lambs weighing from 44kg to 46kg reported from €130 to €138.

Ennis Mart

The mart reported that more lambs are showing the effects of the inclement weather, but that the trade is holding up, despite the sustained factory price pressure.

Low numbers of well-fleshed lambs is said to have also added more bite to the trade in Monday’s sale.

Top prices reported for fleshed lambs include €165 paid for 54.5kg lambs, €156 paid for 50kg and €149 paid for 47kg.

Similar to the sales described above, lambs lacking flesh sold back to the low-€140s. Likewise, lambs weighing from 44kg to 45kg sold from the mid-€120s to mid-€130s.