Sheep plants are operating at significantly lower capacity over the Christmas period.

A high percentage of current throughput was sourced in the week leading up to Christmas, with most deals completed in recent days with frequent sellers, producer groups or specialised finishers. When bonus payments or allowances on transport costs are taken into account, most lambs are trading from €5.15/kg to €5.20/kg.

Plants are reluctant to advance beyond this price range, with varying levels of activity in individual plants influencing demand.

Most plants are also more active for quality assured (QA) lamb, with a 5c/kg to 10c/kg lower quote being offered in some cases for non-QA lamb.

This is likely due to the fact that a high percentage of lamb processed over the Christmas period is destined for the home market rather than the export trade.

Reports suggest that demand is likely to pick up towards the weekend and early next week as plants get back on track.

Early estimates by the main export plants point to base quotes resuming at €4.85/kg, excluding bonuses, for next week. Plants mainly supplying the wholesale market are on an all-in base quote of €5.00 to €5.10/kg.

Ewes continue to trade in general at €3.00/kg to €3.10/kg for lowland ewes, with a top of €3.20/kg reported for very large lots or for light ewes.

As mentioned previously, the level of activity is variable between plants. Some are processing today (Wednesday) while others are not processing until next week or a small kill on Friday.

NI trade: A similar situation is evident in Northern Ireland with plants operating at varying levels of activity.

Linden Foods is quoting £3.90/kg, or the equivalent of €5.19/kg including VAT, while Dunbia Dungannon is not quoting until Friday.

Reports indicate supplies are tight, with producer groups and specialised sellers negotiating £3.95/kg to £4.00/kg, or the equivalent of €5.26/kg to €5.33/kg, to entice sellers to trade over the Christmas period.

Yearly comparison: This week last year, lambs were trading on average for €4.85/kg to €4.90/kg.

With most plants trying to cap weight limits at the higher prices to 23kg, this is a difference of just under €7/head more.

Early estimates of the kill over the last two weeks suggest this year’s kill will finish close to last year’s levels.

However, when figures are analysed, it is likely that the main season kill of 2014-born lamb will finish close to 100,000 higher than the previous year, after compensating for a lower kill in spring and in the region of 80,000 less Northern lambs imported.