Factory agents have been keen to make up for a day’s less processing this week and are working hard to maximise throughput.
Numbers of well-fleshed lambs are in tight supply, with strike action from union members in the Veterinary Service Animal Health Group affecting food production and border controls in Northern Ireland (NI).
In addition to shutting down lamb processing in NI, reports indicate it is also affecting the trade of lambs for direct slaughter in southern plants.
Factories are keen to keep a lid on price, with base quotes remaining largely unchanged and ranging from €6.10/kg to €6.30/kg or €6.30/kg to €6.40/kg when quality assurance (QA) payments are added.
Factories have been much more active in trying to tie down larger consignments of lambs and are offering sweeteners to try to close sales.
Top prices paid through producer groups and to finishers handling high numbers range from €6.50/kg to €6.65/kg.
Deals are also being completed up to 23kg carcase weight, with some agents also willing to discuss allowances on transport costs.
QA status and flesh cover are said to be important factors in unlocking the higher prices, with factories starting to set aside product for filling orders for the Christmas trade.
Ewe trade
The ewe trade remains stagnant, with Kildare Chilling not quoting for ewes for Thursday.
Reports indicate there is a higher percentage of light and poorer-quality ewes in the market, with sluggish demand for such sorts.
A number of plants have a tiered pricing system in place for light and heavier ewes.
The general price offered in the main processing plants ranges from €2.70/kg to €3/kg for heavier ewes, with Ballon Meats leading the charge with its quote of €3.20/kg.
Quotes for light ewes range from €2.50/kg to €2.70/kg. Producers should check potential deductions for ewes killing at fat score 1.
Northern trade
The trade in Northern Ireland is quiet this week, with factories not processing.
Mart sales are handling higher numbers and reports indicate plants are quick to hit the ground running next week and have agents poised with numbers.
The backlog in the market will reduce any pressure for factories to lift price. The long-term effects will depend on how quickly any backlog is cleared.
Last week’s sheep kill was recorded at 11,764, with factories operating close to capacity on lamb and beef. The number of sheep exported south for direct slaughter increased by 1,189 head to 8,464 sheep.
The latest Agriculture Horticulture Development Board (AHDB) market analysis shows British lamb prices rising by over 2p/kg to average £5.73/kg (€6.59/kg), despite numbers rising by over 7%.
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