There is positive news for sheep farmers this week as factories increase base quotes by as much 25p/kg on hoggets.

This brings quotes to 435p/kg with farmers saying there is another 5p/kg to 10p/kg on offer for good-quality hoggets finished on concentrates. Some plants are also increasing their carcase limit from 22kg to 23kg.

With an extremely buoyant live trade, processors have been left with little choice but to increase prices after several weeks of trying to keep quotes at 405p/kg to 410p/kg.

Factors

Several factors are behind the price lift, but perhaps the biggest factor has been renewed competition from processors based in the Republic of Ireland.

Not only has the exchange rate moved in favour of euro buyers this week, but there have been issues with sheep being presented for slaughter that were breaching Irish Department of Agriculture rules on a clean livestock policy.

Kepak suspended its sheep kill on Monday after farmers objected to how rules were being implemented, but has since resumed its kill.

Across Irish factories, it is understood that up to 3,600 sheep were classified as category C (unacceptable for slaughter) last week, with up to 1,000 of those imported from NI for direct slaughter. The same issue does not apply in NI, with factories here routinely clipping sheep in the lairage pre-slaughter.

However, the Irish clean livestock policy has filtered through to the local marts, where southern buyers are tending to avoid dirty lambs.

Live trade

Buyers for southern processors have been increasingly active in marts this week, especially for clean sheep. Prices have passed £100 at the upper end of the market with the main hogget trade returning prices of £96 to £99 per head.

Cull ewes have also seen prices rising, with good-quality lowland cross animals making up to £140.

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Kepak resumes lamb slaughtering after clean livestock row

Sheep prices exceed €5.00/kg mark