Some uncertainty has crept into the sheep trade as the week has progressed, with factories reporting a more volatile trading environment.

This is in contrast with the trade over the Christmas period, with plants exhibiting a keen appetite for lambs.

This is reflected in the kill for the week leading into the Christmas break recorded at 63,883 head.

This is 18,994 head higher than the corresponding week in 2021, which included one day’s less processing.

Last week’s throughput was recorded at 36,282 head for the three days of processing, similar to the final week of the year in 2021.

While on the topic of throughput, the sheep kill for 2022 finished the year at 2.92m head, an increase of 201,579 on 2021 levels.

Higher throughput was underpinned by 216,868 more hoggets slaughtered in the first half of the year, while the ewe and ram kill increased by 33,392 head.

In contrast, lamb throughput reduced by 33,392 head.

Firm position

Getting back to current prices, the trade started the week in a relatively firm position.

Lambs traded through groups and from specialist finishers averaged in the region of €6.65/kg to €6.70/kg, with top prices paid including conformation bonuses rising to €6.75/kg to €6.80/kg.

Prices paid to individual sellers with lower negotiating power ranged in the main from €6.50/kg to €6.60/kg.

A number of factories are depicting a more volatile trading environment as the week has progressed and caution that a reduction in British lamb prices is unsettling the trade.

Kildare Chilling is not quoting for sheep for Thursday, while the two Irish Country Meats plants are holding their base quote of €6.30/kg.

Prices in Britain have fluctuated in recent weeks and the experience of recent weeks has shown prices rising as quick as they have fallen.

Lambs traded through groups on a pricing mechanism of the average of quotes will see prices for Thursday ease slightly, while other plants not quoting are said to have reduced their base quotes to €6.30/kg to €6.35/kg.

Prices are starting the year some 60c/kg to 70c/kg lower than the start of 2022. This is the equivalent of €13 to €15 on a 22kg carcase and does not take into account significant higher finishing costs.

Quotes in factories in Northern Ireland (NI) are steady at £5.35/kg. This is the equivalent of €6.10/kg, with prices in Britain said to be on a similar level this week.

The latest kill data from the Department of Environment and Rural affairs (DAERA) shows that throughput finished the year at 476,334 head. This is an increase of over 30,000 on 2021 levels.

The number of sheep exported from NI for direct slaughter in plants in Ireland increased by over 10,000 head, while the number exported to farms for further feeding or breeding increased by over 25,000. The number exported to Britain increased by over 20,000 head.