The purchasing activity of a number of buyers purchasing lambs for live export has set the mart trade alight and is significantly interfering with the purchasing activity of factory agents.

Numbers being purchased for export are low relative to throughput in factories, but the tight supply-demand balance means that any number of lambs being exported is capable of having a big effect on the dead trade.

Factories have responded by increasing quotes by 10c/kg to 15c/kg.

The two Irish Country Meats plants in Camolin and Navan are quoting a base of €7.60/kg plus the plant’s 20c/kg quality assurance (QA) payment.

This is equivalent to Kildare Chilling for QA lambs, with the plant quoting a base of €7.70/kg plus 10c/kg QA.

Increased returns

Producer groups and those handling significant numbers have seen price returns increase to €7.90/kg to €8/kg and in cases slightly higher when conformation bonuses are taken into account.

All plants are now paying to 21kg carcase weight, with some wholesalers and butchers paying to 0.5kg to 1kg higher to try to entice numbers of top-quality lambs forward.

Purchasing for the Islamic religious festival of Eid al-Adha (28 June to 2 July) has begun for live exporters, but has not taken off yet for factories.

This will gain traction next week, with agents already putting out feelers to try to source higher numbers.

Focus on hoggets

The increase in activity for ram lambs has put a greater attention back on hoggets.

The two ICM plants have increased their hogget quote by 15c/kg to a base of €6.85/kg.

They still remain behind Kildare Chilling’s base quote of €7/kg, but have closed the gap.

Prices paid to individual sellers handling small numbers range from €7/kg to €7.20/kg, with prices of €7.30/kg to €7.40/kg reported as being paid to agents handling large numbers.

Kill figures

Last week’s kill reduced due to one day’s less processing, but it was also limited by tight supplies.

Throughput was recorded at 43,791 head, which is 4,428 head lower year on year.

The kill profile remains considerably different, with the lamb kill of 28,178 head some 8,972 lower year on year.

A 5,090 head year-on-year higher hogget kill of 10,827 continues to compensate to a point for lower lamb throughput.

Ewe and ram throughput has also tightened and at 4,783 head is about 550 lower.

Ewe quotes remain highly variable, with base quotes ranging from €3.30/kg to €3.60/kg, while prices paid range in the main from €3.40/kg to €3.80/kg.

Producers should continue to weigh up whether the mart or factory is the best outlet and also consider weight limits for heavy carcase ewes.