There appears to be an east/west divide evident in terms of lamb prices this week.

Reports show greater supplies of lamb available in areas of the west, with a backlog developing in a couple of plants.

This has seen prices offered to farmers stall at €4.70/kg to €4.75/kg, with only sellers with large numbers or strong negotiating power securing €4.80/kg.

This is in contrast with the east of the country, where top prices of €4.80/kg to €4.85/kg were paid, although some sellers have reported meeting some price resistance in recent days in securing above €4.80/kg for quality assured lambs. This is reflected in Kildare Chilling dropping its base quote 5c/kg to €4.55/kg.

The recent upturn in weather has helped thrive and kill-out, leaving more farmers negotiating for higher weights.

There is also variance here, with some plants holding stringently to 22.5kg, while others have increased to 23kg carcase weight.

IFA national sheep chair John Lynskey said: “The lamb trade is steady, with strong Christmas demand coinciding with a higher sheep kill. Factories are paying a base price of €4.80/kg, with top prices of €4.85/kg paid, while ewes are firm, making from €2.50 to €2.60/kg.”

Imports of sheep for direct slaughter from Northern Ireland have exceeded 10,000 for each of the last four weeks.

Last week’s imports of 10,283 head actually exceeded the number of sheep processed in northern plants – the lamb kill fell 1,704 lambs to 8,430, while ewe and ram throughput rose by about 100 head to 944.

Quotes remain unchanged at £3.75/kg to £3.80/kg (€4.63/kg to €4.69/kg incl VAT), but factories are paying 5p/kg to 10p/kg higher to producers with large numbers to secure sales and fend off southern buyer interest.

British prices have also firmed, on the back of factories and wholesalers sourcing supplies for the Christmas trade.

This has occurred despite the AHDB reporting higher numbers coming on stream with prices ranging from £3.85/kg to £4.00/kg (€4.76/kg to €4.94/kg incl VAT).

New Zealand lamb

The New Zealand lamb crop is at a 63-year low. This is estimated to lead to a 3% drop in export lamb slaughter compared with last season.

Numbers are falling due to ewe culling, as a result of drought conditions, and the ongoing prevalence of facial eczema on the North Island in particular.

There are also continued reports of increasing numbers of producers switching to cattle, where returns are currently greater, according to an industry insight report.