Despite the uncertainty that came in the aftermath of the Brexit vote, the Irish lamb trade has not been affected negatively.

In fact, over the past few days, prices paid to farmers increased by 10c/kg to 25c/kg, with factories paying €5.20/kg to €5.25/kg, well above base quotes, to secure the low supply of lamb currently coming out.

More deals are also being done on weights, with factories paying some farmers up to 21.5kg to 22kg for lambs to sweeten deals.

Buying activity has been very strong to mark the end of the Ramadan festival (which ends on 5 July) and this is extremely evident in the marts, where prices were up €8/head to €11/head on the week previous.

Little or no change

There has been little or no change in factory quotes, despite the higher prices paid.

Dawn Meats lead with a base quote of €5.00/kg excluding bonus payments.

Ballon Meats and Moyvalley have all-in quotes of €5.00/kg, followed by Kepak Athleague, which has a base quote of €4.95/kg excluding bonus payments.

Both Kildare Chilling and ICM are 10c/kg behind the rest with base quotes of €4.90/kg excluding bonus payments.

The overall sheep kill was down 6,158 head last week compared with the corresponding week last year, sitting at 51,188 head. The reduced kill, combined with more activity around Ramadan and a strong store lamb trade, is helping to bolster prices.

More farmers are buying store lambs for summer grazing, which is keeping a floor under prices.

Cull ewes

There are reports that factories are becoming more interested in cull ewes. Prices paid this week range from €2.70/kg to €2.80/kg and are well above base quotes. Base quotes are ranging from €2.30/kg to €2.50/kg.

Northern Ireland

The overall long-term effect of the weakening sterling rate is yet unknown.

Currently, the euro is worth 82p, which is a weakening of 6p compared with this day last week, representing an opportunity for southern factory buyers to source cheaper lambs.

However, the number of lambs in the north and the UK have been tight.

The weaker sterling did not affect the trade in the south because the numbers were not there to influence the market negatively.

In the North, factory quotes increased significantly by 30p/kg to 35p/kg at £3.95/kg £4.00/kg (€5.05/kg to €5.12/kg).

France

The market remains unchanged in France, with Irish lamb trading for €5.20/kg.