Sheep Trends: lamb price climbs above €8/kg

Factories’ stance on refusing to sanction payments of €8/kg has unravelled in recent days.

A further tightening in numbers has forced agents’ hands into competing with greater intensity and offering higher payments.

Base quotes have increased by 10c/kg and while opening quotes are in the region of €7.90/kg for quality assured lambs, an increasing number of lambs are now trading upwards of €8/kg.

U grades traded through producer groups are being paid a price of upwards of €8.10/kg, while at the top end of the market, sellers with strong negotiating power and handling significant numbers are securing returns of €8.15/kg to €8.30/kg-plus.

Sanction

Some factories remain more open to sanction an extra 0.5kg to 1kg carcase weight in lieu of higher payments, with others offering to cover transport costs to sweeten deals.

The tightness in supplies is reflected in last week’s kill falling by a further 1,500 head and recorded at just 35,740.

This is 23,974 head lower than the corresponding week in 2023, with the kill for the year to date now within touching distance of 300,000 head lower.

There is no immediate sign of a recovery in numbers even with quotes rising. Entries of slaughter-fit sheep in mart sales have also tightened significantly in the last week.

The number of ewes on offer is running some 50% lower than in 2023, with just 3,108 ewes slaughtered last week.

Base quotes are unchanged at a range of €3.70/kg to €4/kg in the main processing plants, but much higher is available in plants specialising in the ewe trade and in live sales. This is reflected in Ballon Meats’ higher ewe quote of €4.60/kg.

Deals are also being negotiated on carcase weight and sellers should weigh up all options, with deals of €4.20/kg upwards paid in plants with lower interest in ewes.

Northern Ireland

The trade in Northern Ireland has also moved upwards, with base quotes increasing by a higher sum of 20p/kg to 25p/kg. Opening quotes for Thursday are in the region of £6.50/kg or the equivalent of €7.75/kg.

Reports indicate groups and regular sellers continue to secure 10p/kg to 15p/kg above base quotes.

Throughput fell by 500 head last week to 9,664 head, but remains in a much healthier position than in Ireland.

The number of sheep exported south for direct slaughter reduced by over 1,000 head and at 3,932 is running almost 6,000 head below the corresponding week in 2023.

This is contributing to the huge drop in the kill in Ireland.

Prices are also on the rise in Britain. The latest Agriculture and Horticulture Development Board update shows last week’s prices rising 16p/kg to £6.66/kg, with reports indicating a similar rise this week as in Northern Ireland.