While there have been murmurs of a weakening in the sheep trade since the start of the week, prices are holding steady with all plants remaining on a base of €4.60/kg. Reports suggest some plants threatened to pull base prices lower in recent days. This did not materialise and the reality is that plants are keen to maintain throughput and are reluctant to move first for fear of losing out on lambs by sellers moving to competing plants.

Most lambs are moving in individual sales from €4.75/kg for non-quality assured lamb to €4.80/kg for QA lamb, with frequent sellers and those in producer groups securing €4.85/kg to €4.90/kg. Plants are holding the lid on carcase weight limits at 21kg with a minority of sellers securing payment to 21.5kg.

IFA National Sheep chairman John Lynskey said: “Lamb supplies have tightened as the week progressed, with some factories offering up to €5.00/kg to get numbers. Farmers need to bargain hard on weights and prices to make sure they are getting the best deal.”

Easier NI trade

The trade in Northern Ireland has eased, with more lambs in the market following last week’s holiday period. Plants have reduced quotes for today (Thursday) to £3.00/kg, or the equivalent of €4.50/kg including VAT. Reports suggest some sellers are still securing £3.10/kg (€4.65/kg) with £3.15/kg (€4.73/kg) paid at the top of the market. Last week’s kill reduced about 3,000 head to 9,198 head with the number of lambs exported south for direct slaughter also limited and reducing to 2,297 head. Exports south for the year to date, at 142,316 sheep, are running over 27,000 behind 2014 levels.

In comparison, throughput in southern plants increased 5,390 head to a total of 64,795 sheep. The increase came from lambs, with ewe and ram throughput reducing 338 to 6,531 head. This is just shy of 2,000 head behind the corresponding week in 2014. Ewe and ram throughput for the year is running just short of 25,000 behind 2014 levels.

This helps explain part of the reason for a strong cull ewe trade, with export demand also helping. Ewe quotes have eased to €2.60/kg in the two ICM plants but remain at €2.80/kg elsewhere. Prices of €2.80/kg to €2.85/kg have been secured with higher paid to dealers or frequent sellers. A vibrant mart trade may be a better sales avenue for those with small numbers struggling to negotiate.

Bord Bia reports Irish lamb traded in France at €4.70/kg to €4.80/kg or €4.94/kg to €5.04/kg including VAT. Reports are variable in Britain, with demand stronger in places due to show season altering throughput. Prices are averaging £3.30/kg or the equivalent of €4.95/kg incl VAT.