The dynamics of supply and demand remain very much at play in the sheep trade.

Last week’s sheep throughput increased by a couple of thousand head when compared with the previous week, with a total of 66,099 head being processed.

The rise in throughput was driven by more lambs being slaughtered, with imports of slaughter-fit animals from Northern Ireland helping to boost numbers.

In contrast, the number of cull ewes and rams killed last week eased marginally from a high of just over 13,000 head in the last two weeks to 12,763 being processed.

As a result of more lambs coming on to the market, there is no real pressure on factories to raise base quotes.

This keeps base quotes unchanged, with the range of starting prices on €6.00/kg to €6.20/kg at the plants quoting in the adjoining price table. Plants not quoting are reported as working off a base of €6.10/kg.

The majority of individual sellers with no real negotiating power are securing returns ranging from €6.20/kg to €6.30/kg for quality assured lamb.

Producers trading through groups or those farmers with bigger numbers and have scope to negotiate on price are generally trading lambs from €6.35/kg to €6.40/kg.

At the upper end of the market, there are some deals which include conformation bonuses or allowances on transport rising upwards to between €6.45/kg and €6.50/kg.

The ewe trade remains steady and continues to see a significant prices differential between, and even within, some plants.

Ewes at the lower end of the market are trading from €3.10/kg to €3.30/kg, while sellers with greater negotiating power are securing returns around 10c/kg to 20c/kg higher.

Plants that are active for top-quality ewes are paying upwards of €3.60/kg to €3.70/kg for large numbers delivered to a tight spec.

While the mart trade has eased significantly for large-framed heavy ewes, it is still worth producers with limited numbers weighing up the best outlet for the type of ewe on hand.

Northern Ireland

Processors are keeping a close eye to the sheep trade in Northern Ireland following a sharp drop in the value of sterling.

The weak pound works in favour of Irish plants, lowering the costs of importing sheep.

Combined with a higher weight limit of 21.5kg on lambs, southern factories have an edge over northern counterparts.

Base quotes at northern plants have increased to £5/kg, which converts to approximately €5.90/kg inc VAT, although deals of £5.10/kg (€6.05/kg) and higher are available.

Last week saw a marked increase in the number of sheep imported for slaughter from Northern Ireland, with 8,660 moving south, a rise of 1,019 on the previous seven-day period.

With sterling weakening, this trend is unlikely to see a downturn in the week ahead.

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