Continued difficulties in the spring lamb trade are severely denting farmer confidence. While prices have steadied to an extent, poor demand and delays in getting lambs accepted for slaughter are adding to farmer’s frustrations. Many plants remain slow to quote for spring lamb. Those that are quoting are on a base of €5.80/kg to €5.90/kg.

Where farmers can get lambs accepted for slaughter, most are trading for €6.00/kg by means of a lamb quality bonus or Quality Assurance (QA) payment. Small volumes of lamb are trading above this level to €6.10/kg.

Many factory agents do not anticipate switching over to spring lamb for at least another week, citing a combination of insufficient spring lamb supplies and continued steady hogget throughput. However, there are clear signs, especially in mart sales, that hogget supplies are tightening.

Hogget prices have steadied at €5.20/kg after last week’s 30c/kg price fall. Farmers with small numbers are securing €5.25 to €5.30/kg, with sellers with large numbers or lighter carcases (under 24kg) securing €5.30/kg to €5.40/kg.

Some plants are trying to cut payment to 23kg carcase weight or looking to impose price penalties or a maximum price on very heavy carcases. Ewe quotes in most plants remain at €3.00/kg, with excess heavy hoggets reported as temporarily leading to an oversupply. Reports suggest those handling large numbers are securing €3.20/kg to €3.30/kg at the higher end of the market.

Northern trade: Northern lamb prices have also come under pressure. Prices for the start of the week averaged £4.00/kg, or €5.86/kg including VAT. Quotes for today (Thursday) have fallen to £3.90/kg (€5.72/kg).

The live hogget trade in the North has come under significant pressure, with heavy hoggets trading from £70 to £80 (€98 to €117) per head. The number of sheep imported for direct slaughter in the last week increased marginally to 3,422.

Industry reaction: IFA National Sheep Committee chairman John Lynskey is calling on lamb processors to act responsibly and stabilise the trade.

He said: “IFA has been in contact with the factories seeking a meeting to ensure prices are maintained and early lamb producers receive a margin over costs. Spring lamb numbers remain tight, with prices ranging from €5.90/kg to €6.20/kg.”

Commenting on the difficult trade, an MII spokesman said: “Sluggish market demand and an overhang of hoggets are the principle factors affecting the current market situation. A similar market trend is also evident in the UK at present. Prices have fallen, but Irish prices year-to-date are approximately 10% higher versus the same period in 2014.”