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Factories are coming under pressure to source adequate throughput and have increased quotes in a bid to entice higher numbers forward.
Kepak Athleague and Kildare Chilling have lifted their base quote by 5c/kg to €4.90/kg, with Kildare’s higher Quality Assurance (QA) bonus of 10c/kg rising returns for QA lambs to €5.00/kg, similar to Moyvalley’s all-in quote.
The two ICM plants and Dawn have also increased their base quote by 5c/kg to €4.80/kg.
Sellers in a stronger negotiating position have broken through the upper price limit of €5.00/kg that plants were trying to maintain. Reports show prices paid to regular sellers with large numbers on offer rising to €5.05/kg to €5.10/kg for lambs processed on Wednesday and Thursday.
Other sellers in a very strong position secured €5.15/kg, while some finishers trading at the lower price range negotiated a 23kg carcase weight limit. Prices exceeded this level in the small number of mart sales held this week with agents keen to replenish supplies.
Carcase weights
Securing a higher carcase weight is not a big concern for many, with lambs delivering a lower carcase weight than previous years, which is also hitting lower throughput.
There is a big variation between the carcase weight of lambs finished outdoors on low levels of supplementation and those on an intensive ad-lib diet.
Factories are advising specialist finishers to be mindful of this and to market lambs before they go overweight.
Northern trade
The northern trade is also improving, with quotes lifting 5p/kg to £3.95/kg.
This is the equivalent of €4.45/kg at Wednesday’s exchange rate of 88.7p to the euro and €4.69/kg including VAT at 5.4%. Most producers are securing £4.00/kg, with regular sellers negotiating returns of £4.05/kg to £4.10/kg (€4.81/kg to €4.87/kg incl VAT).
The number of lambs imported south for direct slaughter last week totalled 5,725 head, bringing the annual figure to 402,820. This is 8,381 head above 2016.
IFA national sheep chair John Lynskey said: “Lamb prices have kicked on this week, with factories paying €5.15/kg and top prices of €5.20/kg paid from wholesalers and butchers.
"The large weekly kills in the latter half of 2017 will leave lambs tight in the early part of 2018.”
Cull ewes
Cull ewes are also strengthening, with all quotes rising to €2.80/kg, with the exception of Dawn Ballyhaunis which is quoting €2.70/kg.
Sellers with higher numbers are securing €2.90/kg to €3.00/kg, with top prices rising to €3.10/kg.
Carcase weights range from 40kg to 45kg, so it is advisable to check before selling as the mart may present a good alternative outlet for sellers with small numbers of heavy carcase ewes.
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