Fewer kill days due to the extra-long bank holiday weekend have reduced factory demand for spring lambs and hoggets in the short term, but a price recovery may be on the cards.

Hogget numbers are starting to show signs of decline, especially in western counties. On the flip side, spring lamb numbers are not predicted to breach the gap left by hoggets in the next two weeks and producers are hoping this might spark an improvement in the trade.

Prices for spring lamb are ranging from €6.10/kg to €6.20/kg for quality assured (QA) lots to a 20kg slaughter weight.

Farmers are reporting varying levels of success negotiating higher prices. Some factories have been trying to buy spring lambs for as low as €6.00/kg, but farmers are resisting these lower quotes.

Hoggets are moving at €5.00/kg to €5.05/kg for non-QA lots, with €5.10/kg the top price paid for QA lots.

Base quotes in the factories remain static, with a large differential remaining between Kildare Chilling and the other two main export plants.

Both Kepak and ICM are quoting a base of €4.80/kg for hoggets, with Kildare Chilling 20c/kg ahead on a base of €5.00/kg.

IFA national sheep chair John Lynskey has said poor farmer prices contrasts dramatically with some of the high retail prices on display for spring lamb over Easter.

Spring lambs in the North are making £4.70/kg (approximately €5.87/kg including VAT).

The number of spring lambs becoming available for slaughter is increasing steadily. Hogget prices have improved by 5p to 10p/kg, with farmers securing £4.10/kg to a tops of £4.20/kg (approximately €5.18/kg to 5.30/kg including VAT) for hoggets.

Market performance

Initial reports regarding domestic trade over the Easter period are positive, with many retailers running lamb promotions.

Sales of loins to EU markets have also performed OK, with less volumes of New Zealand lamb in the marketplace. That said, the volume that is present is competitively priced.

This, combined with more plentiful supplies of French and Spanish Lacaune and sterling fluctuations improving the competitiveness of UK lamb exports, is said to be presenting challenges in export markets with carcase and forequarter sales slower.

Meanwhile, the AHDB reports the French market remaining under pressure, with Easter delivering a price increase of €0.90/kg compared with €1.60/kg in 2016.

Preference continues to be placed on domestic over imported product, with a price differential of €1.45/kg on average.

Read more

More life in the mart trade