The sheep trading environment has changed massively. The balance of power is firmly in sellers’ hands, with factories struggling to source required supplies. Lamb quotes for Thursday have increased by 10c/kg to 15c/kg.

Kildare Chilling continues to set the pace and is 10c/kg ahead of the next closest quote. Its base quote has increased 15c/kg to €4.60/kg plus 10c/kg quality assurance (QA) bonus. The two Irish Country Meats plants in Camolin and Navan are also up 15c/kg, as is Kepak.

This leaves the ICM quote on a base of €4.50/kg plus 10c/kg QA, similar to Dawn Ballyhaunis which has increased its base quote by 10c/kg. Kepak’s base quote is 5c/kg lower at €4.45/kg, but it is offering a higher QA bonus of 15c/kg.

Moyvalley Meats has upped its all-in quote by 10c/kg to €4.60/kg, while Ballon Meats remains on an all-in quote of €4.50/kg.

The increase in quotes has lifted prices paid to producer groups to €4.75/kg to €4.80/kg and higher, with sellers with strong negotiating power also pushing prices north of €4.70/kg. Individual sellers with less negotiating power but offering significant numbers are securing prices of €4.65/kg to €4.70/kg. Factories are particularly keen to tie into deals with farmers who will have significant numbers coming on stream in the coming months.

The trade has also kicked into life in Northern Ireland and Britain. Quotes in northern plants are unchanged at £3.65/kg, but this quote does not reflect prices paid as the week progresses. Sellers trading at the higher end of the market are negotiating returns ranging from £3.70/kg to £3.75/kg or the equivalent of €4.32/kg to €4.38/kg at 85.7p to the euro and €4.55/kg to €4.61/kg VAT inclusive at 5.4%.

Producer groups are pushing prices 5p/kg to 10p/kg higher by means of bonus payments. This week’s sheep feature on page 35 is a detailed analysis of sheep imports from Northern Ireland and Britain. It should be noted that the official carcase weight limit offered by northern plants has increased by 1kg to 22kg.

Prices in Scotland have strengthened by 10p/kg to 15p/kg on average, while there are similar increases in England and Wales. This is pushing prices paid north of £4.00/kg (€4.67/kg excl VAT), with top prices rising to £4.10/kg to £4.15/kg (€4.78/kg to €4.84/kg). Reports suggest supplies could tighten considerably in the UK following a focus all year on pushing supplies forward ahead of the October Brexit date.

Ewe supplies are also much tighter and this is inserting much more life into the trade. Dawn, ICM and Kildare plants have increased their ewe quotes by 10c/kg, with Kepak up 20c/kg to leave quotes ranging from €2.40/kg to €2.50/kg. Top prices paid to sellers handling large numbers of ewes are 10c/kg to 15c/kg higher.

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