Lamb prices experienced stability and, in a number of cases, recovered since the start of the week. Quotes on Monday averaged €4.80/kg with some processors and agents trying to purchase at a lower quote of €4.70/kg.

As the week progressed, all plants were offering a base of €4.80/kg with deals of €4.90/kg to €5.00/kg commonplace yesterday (Wednesday).

The steadying in the trade has been shortlived with some processors reducing quotes by 30c/kg or to €4.50/kg for today (Thursday).

A number of plants are not quoting for lambs. Processors are blaming the lift in supplies in the last two weeks and weakened market demand in France creating a backlog in the trade.

Increasing throughput in Britain and a resultant weakening in British prices to £3.80/kg to £3.90/kg (€5.05/kg to €5.18/kg) is also being suggested as reducing the competitiveness of Irish lamb in France.

IFA National Sheep Committee chairman John Lynskey said that there is real anger among sheep farmers over the way lamb prices have been pulled back and their margins wiped out.

He said it is clear that the factories have moved ahead of the market: “There can be no justification of price cuts of €15 to €20 per lamb in two weeks.”

Lower NI imports: The number of northern sheep imported for direct slaughter fell from 4,721 to 3,668 head last week. A strengthening in the value of sterling to 79p and prices of £3.70/kg (€4.91/kg) including VAT is attracting sellers to do more deals in the North.

Plants have increased activity to cope with the higher supplies and last week processed 15,270 head, the largest kill since 2009. Imports south since the start of the year are running 53,498 head behind last year’s levels.

Live export activity: Live export activity is variable. At present, it is mainly in the western half of the country with reports showing weighing centres paying €65 over for lambs on Wednesday.

Exporter activity in ewes is helping to maintain a source of competition to factory prices with many sellers favouring the mart route for heavy-carcase, fleshed ewes, where prices range in general from €95 to €115 per head. Factory quotes range from €2.50 to €2.60/kg with deals of €2.70/kg or allowances on weight reported to secure the sale of good quality ewes.

Vibrant store trade: Demand for store lambs is brisk, with sheep and beef farmers purchasing stores to graze surplus grass. Prices for lowland and crossbred lambs of €2/kg is commonplace, with prices rising to €2.20/kg to €2.30/kg for short-term and good-quality lambs in the 38kg to 42kg bracket. Ewe lambs are also attracting a price premium of €3 to €8 above similar quality lambs.