There has been more life in the lamb trade since the start of the week. Factory agents and processors are more active in sourcing lambs with the general run of prices ranging from €4.65/kg to €4.75/kg.

In a small number of cases, sellers with large numbers have reported negotiating a top of €4.80/kg for choice lots.

Quotes for today (Thursday) remain unchanged with most plants on a base of €4.50/kg. Kildare Chilling lead the trade on a base of €4.60/kg.

By merit of the quality assurance (QA) and lamb quality bonus, most sellers are easily securing a price of €4.60/kg to €4.70/kg. Producer groups also report more demand from processors and more room to negotiate above the quoted base price. Most plants are now also paying to 21.5kg, with ICM increasing their carcase weight limit from 21kg to 21.5kg this week.

Lamb supplies in the UK have eased back slightly from the surge in throughput in recent months. Bord Bia’s sheep specialist Declan Fennell said that this should hopefully be followed by a period of orderly supply, which will hopefully bring more stability to the market.

An improvement in weather across the continent should also lead to more retailers preparing for and increasing promotion activities around the barbecue season.

Year-to-date throughput in the UK is running 431,000 above the same period in 2013.

Fifty-five percent of this increase, or the equivalent of 234,000 head, were processed in the last two weeks of June and first two weeks of July.

Declan said this coincided with poor weather on the continent and curtailed normal promotional activity.

Northern trade: Demand for lamb in the North is firm, with processors on a quote of £3.60/kg (€4.79/kg including VAT).

The northern kill is continuing to run above normal levels, with 9,665 lambs processed last week in a four-day week. The yearly kill is now running about 45,000 head above the same period in 2013.

Imports of northern sheep, at 3,129 head, are only half of last year’s volumes of 7,705 head. Imports are running over 61,000 head behind last year’s levels although southern processor activity in the north is reported as stronger this week.

Ewe trade: The ewe trade is continuing to benefit from a strong live trade. Quotes vary from €2.40/kg to €2.60/kg.

However, sellers report room to negotiate 10c to 15c/kg extra and carcase weight allowances above 40kg in some plants.

Processors caution farmers to select lambs tighter with an increase in the number of lambs killing under 17kg carcase weight. With a strong store trade, these lambs would be better marketed in mart sales.