Base lamb quotes have slipped by 5c/kg to 10c/kg in some plants, leaving the majority of factories working from a base quote of €6.00/kg.

There are very few lambs moving at this quote, with a high percentage of lambs trading in smaller numbers or from producers with lower negotiating power moving from €6.15/kg to €6.20/kg.

Sellers handling higher numbers or trading through groups are securing returns of €6.30/kg, while at the top end of the market, prices of €6.35/kg to €6.40/kg have been paid, including lambs receiving conformation bonuses.

The two Irish Country Meats plants remain the only plants to have moved to 22kg carcase weight across the board.

Other plants are paying the extra 0.5kg to varying degrees, although more farmers are having success in pushing for the extra weight. The scope to achieve this is helped where lambs are delivering carcases with a good cover of flesh and are well conformed.

Numbers appear to be starting to follow a seasonal decline, with last week’s throughput reducing by 4,697 head and recorded at 60,788 sheep.

After several weeks of higher-than-normal throughput, the ewe and ram kill reduced by 1,134 head to 11,285. This still remains 2,619 head higher in comparison to the corresponding week in 2021.

The ewe trade is unchanged to 10c/kg weaker in some plants. This leaves base quotes dropping below €3.00/kg in some plants, with typical quotes ranging from €3.00/kg to €3.20/kg.

Tight supplies are helping to underpin prices in outlets handling top-quality large-framed ewes and prices here remain at €3.40/kg to €3.60/kg on average. The mart continues to be a good alternative outlet to weigh up for such ewes.

Tighter differential

The differential between lamb prices in Ireland and Northern Ireland has tightened further.

Base quotes are at £5.15/kg, equating to €5.94/kg at Wednesday afternoon’s exchange rate of 86.7p to the euro.

The flat-rate VAT compensation of 5.5% for unregistered farmers in Ireland is maintaining base quotes in southern plants above base quotes in Northern Ireland.

Top prices are 5p/kg to 10p/kg higher, with factories keen to ward off the interest of agents purchasing lambs for direct slaughter in southern plants.

The number of lambs moving south for direct slaughter in southern plants increased by 300 head last week and was recorded at 8,510.

Price penalties

Producers who have not killed lambs in a significant period of time need to be mindful of potential penalties for lambs deemed out of spec.

Plants are penalising lambs killing out at fat score 1 by up to €1/kg, while deductions for light carcases vary from 15kg to 16kg across plants and are also up to €1/kg lower than base quotes.

Where there is any doubt, it is important to clarify before drafting lambs.