Last week, the question was whether prices would reach €5/kg. Thankfully, many farmers secured a price of €5/kg and higher in some cases early this week for their lambs. The question now is will prices rise much further?

Factories have been very busy this week trying to secure numbers and were willing to give farmers prices of 15c/kg to 20c/kg ahead of official base quotes. Even factories with the lowest base quotes were willing to pay prices at the higher end of the market, paying €4.95/kg to €5/kg. To sweeten deals further, many factories are now increasing weight limits from 22kg to 23kg deadweight.

Some farmers with higher numbers of fleshed lambs and producer groups have negotiated prices of €5.05/kg to €5.10/kg. It is evident that factories are very active now, looking to secure tightened supplies, which should continue to be tight between now and Christmas.

The total cumulative supplies of sheep slaughtered is 2,314,440 – down 9,986 head compared with the same period last year. It seems unlikely that big numbers of lambs will come out between now and Christmas, which should help to maintain the competition for the next few weeks.

Mart managers report increased demand for factory-fit lambs, with most of these lambs now making €102/head to €110/head (see Sheepwatch below). The ball now seems to be very firmly in the farmers’ court and the advice is to hold strong for prices over €5/kg. Farmers with heavy lambs should also demand that weight limits are increased to 23kg.

Price increase for cull ewes

Cull ewe numbers are becoming tight now too and processors are paying farmers with large numbers more to secure market share. The quotes remain unchanged at €2.60/kg to €2.80/kg, but farmers report higher prices of 10c/kg to 15c/kg are being paid in addition to official quotes. Factories are keen to secure big numbers of fit ewes and some farmers have secured €2.90 to €3.00/kg.

Northern Ireland

Greater activity by agents purchasing for southern plants increased the number of lambs exported south last week for direct slaughter to 9,912, a lift of about 2,200 sheep.

This avenue remains a vital source of throughput for plants, with agents reported to remain very active in mart sales and driving prices upwards. NI lamb throughput reduced from 10,742 to 10,096 last week. Processor prices are rising to stay in contention, with quotes up 5p to £3.25/kg or the equivalent of €4.87/kg, but £3.30/kg (€4.94/kg) is becoming more available as the week progresses.