Reports of factory agents trying to talk down the lamb trade last week on the back of weaker prices in Britain have proved unfounded. In Britain, the mart trade has strengthened this week by an average of 5p/kg or £2 to £3 per head, according to EBLEX figures, while deadweight prices are static at €4.75/kg (including VAT).

Attempts by factory agents to inject negativity into the sheep trade in the hope that producers will offload more lambs shows how anxious meat processors are becoming over supplies. Lamb prices have strengthened this week, despite the best efforts of factory agents, simply because numbers on the ground are scarce.

Top prices being paid yesterday (Wednesday) ranged from €4.80kg to €4.90/kg. The higher price was paid freely at plants operating in the southeast and midlands, and excludes the quality assurance (QA) premium, which adds a further 10p/kg on top of this.

IFA National Sheep Committee chairman John Lynskey said that lamb price continues to strengthen from solid market demand and tight supplies. He said prices have kicked on, with €4.90/kg available and top prices of €5/kg.

ICM, Kildare and Dawn Meats are quoting €4.60/kg today (Thursday). Moyvalley is quoting an all-in price of €4.60/kg. Ballon Meats is quoting €4.75/kg, which is much more reflective of actual prices being paid.

The bank holiday and this week’s protests caused disruption to the supply of lambs over the early part of the week and plants have been eager to get throughput back on track.

In a repeat of last week, reports are being made of factories operating under capacity, such is the limited supply of finished lambs.

In Northern Ireland (NI), supplies continue to tighten and this is reflected by a lower weekly kill and fewer sheep being exported south in the past week. A total of 9,970 sheep moved south for slaughter after a sustained period of weekly imports exceeding 10,000 head.

Exports of NI lambs to southern plants are now running 78,000 head behind 2013 levels. At current levels, this amounts to eight weeks Northern supply. These lambs have gone out of the system, being processed in northern plants, so there is little threat of a surge in northern lambs coming onto the Irish market and distorting prices.

Base prices in NI start at £3.60/kg (€4.80/kg), with prices being paid at 5p/kg to 10p/kg above base quotes. Northern lamb groups supplying southern plants are seeing lambs move at £3.60/kg to £3.65/kg (€4.80/kg to €4.85/kg including VAT). Haulage is paid on top of this price.

Agents for southern plants have been extremely active at northern marts in Ballymena and Enniskillen, with the equivalent deadweight prices of €5 to €5.10/kg paid.