Sheep processors have cut base quotes significantly this week in an effort to put a lid on lamb prices.

Up to now, prices have been very strong for the time of year and record prices were paid in the marts for factory-fit lambs.

However, on Wednesday, the main export plants have brought their quotes back to a base of €5.40/kg and €5.50/kg excluding bonuses, which is a massive drop of 40c to 50c/kg on this time last week.

Prices being paid vary, but are well above base quotes. Factories are attempting to purchase lambs for €5.60/kg to €5.70/kg, but these prices are at the lower end of the market.

Regular sellers and producer groups are securing €5.75/kg to €5.80/kg and higher in some cases.

Moyvalley Meats is leading the price table this week, with an all-in quote of €5.80/kg. Kildare Chilling is in front of the main export plants, with its quote of €5.50/kg excluding bonuses. Irish Country Meats and Kepak Athleague are behind, with base quotes of €5.40/kg excluding bonuses and Dawn Meats failed to quote.

Plants are pointing to reduced demand for lamb carcases in France and the end of the Ramadan festival for the dampened trade.

IFA national sheep committee chair John Lynskey said factories are struggling to get adequate numbers of lambs to meet strong market demand and are having to pay significantly more than the lower quoted prices.

He said, in a lot of cases, factories are paying 20c to 30c/kg above quotes. Lynskey said the IFA met Meat Industry Ireland and the lamb factories recently and highlighted the need for strong viable lamb prices along with price stability.

He said market demand for lamb is very strong, with recent figures showing that Easter lamb sales were up 10% on the domestic market.

In addition, he said skins prices are significantly higher than last year, worth up to 20c/kg, and some offal prices are also rising.

Cull ewes

Cull ewes are a very strong trade in the marts, up €5/head for fleshed lots currently (see Sheepwatch below). Factory quotes range from €2.60/kg to €2.70/kg.

Northern Ireland

Base quotes in the north are sitting at £4.60/kg (€5.49/kg VAT inclusive). Producer groups are securing 5p/kg more, but, like the south, quotes have taken a hit of 20p to 25p since last week.

In the marts, fleshed lambs are generally selling for £90 to £100/head (€102 to €113/head).