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Lamb producers are in a very strong position currently, with prices moving in a positive direction.
Most producers are securing €6.00/kg for their lambs including bonus payments. These prices are up 10c/kg on the week previous.
Farmers who dug in their heels negotiated a further 10c/kg or a price of €6.10/kg during the week.
The mart trade has been particularly strong, with prices up €5/head on average for all grades of lamb. This highlights the demand that is out there currently.
Often, price goes in the opposite direction for lambs at this time of year, so sheep producers will be savouring the current strong trade.
Most plants increased their quotes by 15c to 20c on last week’s figures.
Kildare Chilling and Dawn Meats are leading the price table with quotes of €5.90/kg excluding bonuses, followed by ICM with its quote of €5.80/kg excluding bonuses.
Kepak Athleague has pulled its quote back 5c/kg to €5.75/kg, the only factory to do so.
Last week’s total sheep kill was low again, standing at 47,091 head. This is back 12,900 on the previous week, with a day less processing, and 8% back on the corresponding week in 2016.
The good trade is being bolstered by both the Muslim festival Ramadan and increased UK demand.
With the end of the Ramadan festival approaching (24 June), more competition is being inserted in the lamb trade.
Buying is usually greatest before the festival begins and before it ends.
In addition, the UK is a strong destination for Irish lamb currently. Although the UK is the largest exporter of sheep meat in the EU, it is also a significant importer of lamb.
In recent years, imports and exports of sheep from the UK have been close to equal.
New Zealand has been a significant exporter of lamb to the UK, but recently its lamb supplies have been falling.
The reduced New Zealand supply and UK hogget numbers starting to tail off means Irish lamb is in a prime position to plug the gap left.
IFA national sheep chair John Lynskey said the lamb trade is stronger this week, with factories very anxious for lambs and paying €6.10/kg to 21kg and more.
In the north, prices have been strengthening over the past number of days too, with strong demand from southern buyers in the marts.
A total of 5,421 head were exported south for direct slaughter last week.
Quotes range from £4.85/kg to £4.90/kg (equivalent of €5.78/kg to €5.84/kg including VAT), but farmers are securing bonuses of 10p to 15p on top of these quotes.
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