The big talking point on most farmers’ lips is if, and when, lamb prices will hit €5/kg. While the market has moved on significantly and sellers are moving closer to €5/kg, individual sellers have, to date, not confirmed reaching this target.

A high percentage of sellers are this week trading lambs from €4.75/kg to €4.80/kg, with frequent sellers trading at the higher end of the market securing €4.85/kg. Some producer groups have reached €4.90/kg by means of bonus payments.

As can be seen in the quotes table, Kepak Athleague has significantly increased its quote again this week and is quoting a base of €4.85/kg. Other export plants have also increased quotes by 20c/kg to 30c/kg, but remain behind on a base of €4.60/kg to €4.70/kg. The rate of increase shows how anxious factories are to secure market share of a tightening supply pool.

This is reflected in agent activity in marts, with factories keen to capitalise on this sales avenue. As detailed below, prices have increased by €3 to €6/head, with many reported prices suggesting dealers would require €5/kg or even more to cover sales, commission and transport costs.

The rapid decline in weather and deteriorating underfoot conditions are likely to put pressure on the rate of lambs finishing. Pressure on supplies is enforced by last week’s kill remaining static at 50,073 head, despite factories rising prices to entice more lambs forward.

Reports indicate buyers purchasing for southern plants have also become more active in northern marts. Last week’s kill fell about 800 head to 10,742, which in turn is running about 1,650 head above the corresponding week in 2014.

Quotes have increased to £3.20/kg, or the equivalent of €4.79/kg including VAT. All plants have moved to a carcase weight limit of 22kg since last week.

IFA National Sheep Committee chair John Lynskey said: “Sellers should demand maximum value when negotiating for their lambs. Some plants are trying to hold limits to 22kg to 22.5kg, but there are others securing 23kg. Selling power has shifted to sellers and they should make full use of this.”

Rising ewe trade

Demand for ewes is rising to compensate for lower lamb supplies. Numbers are tight and this is leading to more competition and higher prices.

Quotes remain at €2.50/kg to €2.60/kg, but sellers are securing from 10c/kg to 30c/kg above quoted prices.

French prices

Bord Bia reports grade one Irish lamb selling for the equivalent of €4.73/kg to €4.83/kg including VAT, with a word of caution to potential lower demand due to security measures curtailing sales.