The sheep trade remains under significant pressure, with prices reducing by an average of 5c/kg to 10c/kg.

Kepak has reduced its base quote by 5c/kg and, at a base of €4.65/kg, is top of the export plants. Kildare Chilling has eased 10c/kg to a base of €4.60/kg, with ICM remaining on a base of €4.50/kg, while Dawn Ballyhaunis is not quoting for lambs. Moyvalley’s all-in quote is €4.60/kg, while Ballon is offering €4.70/kg.

Plants struggled to get required numbers towards the end of last week and the start of this week, with agents much more active in marts and trying to compensate for lower direct throughput.

Despite tighter supplies in some areas, factories have been firm in their price stance, with more sellers having difficulty in securing prices above base quotes in recent days.

The general trade for lambs is €4.65/kg to €4.75/kg. Producer groups and those supplying through prearranged deals are securing €4.75/kg to €4.80/kg, with top prices of €4.85/kg paid earlier in the week.

IFA national sheep chair John Lynskey said: “Farmers are frustrated over the ongoing pressure applied by factories at a time when the sterling exchange rate has moved from 92p to 89p against the euro.

“To encourage growth in the breeding flock, factories need to commit more to domestic supplies and local farmers with prices closer to €5.00/kg to ensure quality and orderly disposals are maintained.”

Northern plants remain on a base quote of £3.80/kg (equivalent of €4.52/kg including VAT), with farmers also meeting resistance in negotiating for higher prices.

The northern kill is steady, with 10,423 lambs processed last week. Some reports suggest that there is a backlog in lambs, with a couple of plants operating at lower intensity this week.

The number of lambs coming south for direct slaughter is steady at 9,455. This brings the annual number imported to 262,574, over 13,000 head above the same period in 2016.

British prices have also eased in the last week by 5p/kg to 10p/kg. Prices range from £4.00/kg to £4.05/kg or the equivalent of €4.76/kg to €4.82/kg. The AHDB reports the English flock reaching its highest level since 2005, at 15.8m head, in the latest DEFRA farm survey. This is a 3% increase year on year, with the breeding flock increasing 4% to 7.4m head.

Ewe trade

All plants are now quoting a base of €2.40/kg for ewes, with the exception of Ballon Meats, which is quoting €2.60/kg.

Prices range from €2.50/kg to €2.60/kg, with throughput remaining high and limiting demand.