The sheep trade continues in a steady manner, with no real changes of note in recent weeks across the main EU markets.

A high percentage of quality assured lambs in Ireland continue to trade in a price range from €7.20/kg to €7.30/kg.

Regular sellers with greater negotiating power and U grading lambs traded through groups are securing returns of €7.35/kg to €7.40/kg, while at the top end of the market there are smaller numbers rising to and in cases topping €7.50/kg.

Agents are keen to tie into deals for fleshed lambs, but are reluctant to loosen the purse strings, with supplies finely balanced with demand.

The two Irish Country Meats plants in Camolin and Navan have increased their carcase weight limit to 22.5kg.

Reports indicate that light lamb carcases remain a much greater issue than heavier carcases, with lamb kill-out running 2% to 3% lower in many cases.

Procurement agents are advising farmers to take greater control when drafting, especially where drafting lighter lambs and there is a risk of falling below 17kg carcase weight.

The higher number of light lambs in the kill profile is leading to some plants that have limited markets for lighter carcases moving to penalise light lambs which are not contracted through a producer group.

Their advice where there is any doubt is to clarify payment terms before moving lambs and to err on the side of caution when drafting lambs.

Trade is similar in Northern Ireland. Base quotes remain unchanged at £5.90/kg for Thursday or the equivalent of €7.05/kg at Wednesday afternoon’s exchange rate of 83.7p to the euro.

Regular sellers and groups are securing returns of £6/kg (€7.20/kg), with agents reluctant to pass this point.

Exports remain steady, with the highest percentage of upwards of 7,000 head destined for factories in Ireland.

Reports indicate over 1,500 head continue to move to Britain, while exports to the Netherlands have ranged in recent weeks from 400 to 700 head.

Global snapshot

Prices in Europe reported by Bord Bia show that French farmers are enjoying returns of upwards of €9/kg, some €1.26/kg higher than in 2023.

Farmgate returns of €8.74/kg in Spain are running €1.33/kg higher, while British prices of €7.66/kg are €1.36/kg higher.

Prices in Ireland and Northern Ireland are about €1/kg higher than in 2023.

Australian lamb prices have enjoyed a significant lift, with the latest price reported at €5.07/kg. This is €2.30/kg higher than in 2023 and is being fuelled by increased demand from the US market.

It leaves plants here trying to secure final access to the US market increasingly frustrated.

The improvement in price in Australia is good for farmers in Europe, as it makes markets closer by more attractive than targeting increased exports to the EU. New Zealand lamb prices remain subdued at €4.27/kg.