The sheep trade started the week in a vulnerable position, with prices steady in most cases, but easing in some plants by 5c/kg. Numbers appear to be tightening as the week progresses and this is leaving factories more anxious to secure lambs.

Procurement managers and factory agents are much more active in contacting producers and are looking beyond immediate deals to try to gauge numbers coming on stream in the coming days.

Quotes for Thursday remain largely unchanged on last week, while, as detailed in the SheepWatch comment below, prices for factory lambs have, in most cases, reversed last week’s downward price pressure.

Kildare Chilling’s base quote of €5.10/kg plus 10c/kg quality assurance (QA) bonus remains well out in front of the other plants. Dawn Meats base quote of €4.95/kg plus 10c/kg QA is 5c/kg lower on the week and it is joined this week by Kepak Athleague on a base of €4.95/kg plus 15c/kg QA. The two ICM plants are unchanged on a base of €4.90/kg plus 10c/kg QA.

Individual sellers moving small numbers of QA lambs are negotiating returns of €5.10/kg to €5.20/kg, while prices paid to sellers handling large numbers range from €5.20/kg to €5.25/kg and in cases €5.30/kg by merit of producer group bonuses or quality payments.

There are more farmers trading at the higher end of the market securing a carcase weight limit of 22kg, but by and large factories are sticking tight to a limit of 21.5kg carcase weight.

Factories are keen to maintain throughput at a high level and this is reflected in last week’s kill, which increased 1,542 head to reach 62,748. The number of lambs slaughtered is running 97,246 head higher than the corresponding period in 2019, while total throughput is running 120,217 head higher.

Ewe throughput remains high at 10,840 head. Factory quotes for ewes remain at €2.50/kg on average, with individual sellers capable of securing 10c/kg to 15c/kg higher. Top prices secured by agents handling large numbers are from €2.70/kg to €2.80/kg.

IFA national sheep committee chair Sean Dennehy said: “Lamb prices in general range from €5.20/kg to €5.30/kg with deals to 22 kg available. Some deals above these prices are being paid for larger lots and those in producer groups. With lambs slaughterings 10% ahead of last year and higher retention of ewe lambs, it is clear numbers are tightening.”

NI factories continue to quote a base price of £4.35/kg or the equivalent of €4.79/kg at an exchange rate of 90.8p to the euro. Regular sellers and groups continue to command 5p/kg to 10p/kg higher, with this premium offered in cases to fend off interest from southern plants.

The number of sheep exported from Northern Ireland for direct slaughter in southern plants increased by about 400 head last week to reach 7,940.