Sheep factories are being very cautious in terms of setting lamb prices as a result of the UK’s decision to leave the European Union. Factories continue to stand by deals made for Friday, but are reluctant to quote prices for Monday morning. Some farmers say they have been assured that prices paid will be on par to this week at €5/kg to €5.10/kg and higher for producer groups.

Agents say that the fluctuation in the sterling is causing a lot of uncertainty and this is causing French buyers to hold back before making orders for next week. Some agents have taken a pessimistic view that with a weak sterling British lamb will be a favourable source for French buyers, but anecdotal reports suggest supplies of British lamb are not strong enough to make a major impact in France and if the euro continues to fall in line in with the sterling, the differential will not be there.

Tight supplies

Up to this point, the trade was strengthening. In mart sales yesterday, factory agents were very keen for lambs. David Quinn, Carnew mart manager, said their sale yesterday was up €5/head to €8/head on the previous week and said that factory agents were anxious for supplies.

“On average, 43kg lambs made €109/head whereas, last week, they were as low as €100/head,” said David. The cull ewe trade has strengthened this week with light ewes selling for €3.20/kg to €3.30/kg in factories and heavier ewes making €2.80/kg.

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