There has been no real change in the lamb trade over the last week. Supplies remain strong, but factory appetite, helped by firm market demand and Christmas orders, is helping to keep a floor under the trade.

Quotes are unchanged in all plants, leaving Kildare Chilling top of the price table by means of its €4.85/kg base quote plus a 10c/kg quality assurance (QA) bonus.

Prices paid to farmers range in general from €4.85/kg to €4.90/kg where smaller numbers are changing hands to €5.00/kg where deals are being negotiated by regular sellers and those handling significant numbers.

Producer groups and specialist finishers with access to very large numbers continue, in cases, to secure prices of €5.05/kg to €5.08/kg or slightly higher by means of bonus payments.

Last week’s kill totalled 66,385 head, a marginal increase of 1,174.

Throughput is being helped at present by store lamb finishers now drafting lambs and also by higher numbers coming from farmers who introduced or stepped up meal feeding levels in response to difficult weather.

Northern lambs also remain an important component of total throughput, with 9,930 lambs imported south last week for direct slaughter.

Numbers for the year to date, at 367,070, are running about 1,500 head above 2016 levels.

Northern plants have moved to reduce prices, with quotes falling 5p/kg to £3.90/kg. This is the equivalent of €4.31/kg at 88p to the euro and €4.67/kg when VAT at 5.4% is factored into the equation.

Plants are still keen for supplies, with regular sellers securing 5p/kg to 10p/kg above quoted prices.

IFA sheep chair John Lynskey said: “The trade is being helped by strong market demand and no backlog of lamb in the system. Buying is also taking place for the Christmas trade, which is adding more strength to the trade.”

While lamb numbers are firm, factories are having to work harder to get ewes.

Quotes are unchanged at €2.60/kg to €2.70/kg, but regular sellers and those with big groups of ewes to trade are having more success in negotiating, with top prices of €2.90/kg to €3.00/kg reported.

NZ lamb crop

Meanwhile, Beef and Lamb New Zealand estimates the 2017 lamb crop has increased by 1.9% or 436,000 head to 23.7m lambs. The increase stems from higher ewe productivity, with the average litter size reported as increasing from 1.21 lambs born per ewe to 1.27 lambs born per ewe. The total volume of lamb available for export is predicted to decline slightly, with higher numbers offset by lower carcase weights.

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