Momentum in the lamb trade continues, as shown in our price table. Most sellers are securing €5.45/kg to €5.50/kg, with regular sellers and those with higher numbers commanding €5.55/kg to €5.60/kg as the week progresses.

Numbers remain tight despite the price rise, with last week’s kill reducing by about 500 head to 43,218. This does not show the total extent of the tightness in lamb supplies, with the ewe and ram kill rising from 6,564 to 6,918 as factories try to compensate for falling lamb throughput. Ewe prices have lifted to €3.15/kg to €3.20/kg, with rams at €2.90/kg to €3.00/kg.

The hogget trade is firm in the west but there has been a sharp rise in quotes in the midlands and east as plants compete to secure supplies. Kildare Chilling has increased its base quote by 30c/kg and joins Kepak Athleague and Ballon Meats on €5.40/kg. The plant says proof of residency is needed to secure their 10c/kg quality assurance bonus.

The two ICM plants have also lifted their base quote by 10c/kg and join Moyvalley Meats on €5.30/kg. Some producer groups remain frustrated with lower quotes, saying they are not being rewarded for delivering in-spec stock.

While on the subject of specification, plants comment that quality has become very variable, with under-fleshed and overweight lambs becoming a rising concern. They say sellers delivering lambs within the desired weight range and with adequate cover have a better chance of negotiating the higher prices payable.

IFA sheep committee chair John Lynskey advised farmers to assess lamb quality to maximise returns. He said farmers with in-spec lambs should bargain hard to achieve the full value for their lambs while those with under-finished or heavy lambs should consider the live trade.

Solid NI trade

Northern base quotes in some plants have eased to £3.90/kg or the equivalent of €5.40/kg including VAT. Regular sellers and those handling higher numbers are securing 10p/kg to 15p/kg higher to ward off competition from southern buyers.

An easing in the value of euro to sterling is said to have eased competition in marts but with 10,016 sheep imported south last week, northern sheep remain a vital part of the Irish kill.

Declan Fennell, Bord Bia, reports no change in the French and UK market for Irish sheepmeat exports. Irish lambs are trading in France for €5.10/kg to €5.20/kg or €5.35 to €5.46 including VAT while UK prices for Irish lamb are reported as running 10c/kg higher at the equivalent of €5.46/kg to €5.57/kg.

Declan adds that an analysis of carcase weights for the first four weeks of the year shows an increase of 32% or 640g to 20.8kg compared to the same period in 2015.