A combination of tighter supplies and an improvement in market demand is instilling some well-needed life into sheep markets.

With hogget supplies falling and quality becoming variable, factory agents have started to take more of an interest in spring lambs.

This has been reflected most in marts where managers have reported prices rising anywhere from €3 to €8/head, driven by factory agents competing with butcher buyers.

Factories have retained base quotes at €5.50/kg, but there is scope to secure higher. Supplies are tightest in the west, with top prices of €5.70/kg to €5.80/kg paid.

There were also reports yesterday of sellers with significant numbers securing €5.85/kg, while agents and dealers would need to be getting higher returns to cover costs of mart sourced lambs.

With a greater emphasis on spring lambs, sellers have greater selling power. The rise in sales is reflected in last week’s spring lamb throughput rising to 10,278, up 5,894 on the week.

At the same time, hogget throughput has fallen from 30,652 to 28,575. The short week and declining hogget supplies are adding to sourcing challenges.

Hogget quotes also remain unchanged, ranging from €5.00/kg in the main export plants to €5.20/kg in Ballon Meats. Sellers with higher numbers have secured €5.20/kg to €5.30/kg, while those with light-fleshed hoggets (under 23kg) are in the strongest position, with reports of €5.35/kg paid.

Northern trade

At 4,177 sheep, imports from the north remain an important source of supplies for southern plants. Competition for this supply pool is also increasing, with northern factories starting to handle higher numbers (and southern buyers armed with a stronger euro) with last week’s lamb and hogget throughput increasing 600 head to 4,791.

Plants have reduced hogget quotes to £3.60/kg (equivalent of €4.77/kg including VAT), with some viewing the price pull as a tactic to force out remaining hoggets.

Spring lamb quotes have eased 5p/kg and vary from £4.10/kg to £4.15/kg (€5.44/kg to €5.50/kg), with more competition also reported as slowly entering the trade despite the pull in price.

GB and French trade

British hoggets are averaging £3.85/kg to £4.00/kg (€5.10/kg to €5.30/kg), while small numbers of spring lambs are trading for £4.20/kg to £4.35/kg (€5.57/kg to €5.77/kg).

Demand in France improved last week, with retail promotions taking place. Irish spring lambs were reported as trading from €5.60/kg to €6.20/kg, depending on quality and destination.

Spanish new-season lambs are tightening, but at €4.70/kg to €5.20/kg, are still competing with Irish exports.