Lamb prices have bucked the seasonal downward trend this week, with factory agents scrambling for numbers.

Prices of €5.50/kg to €5.55/kg were common, with prices of €5.58/kg to €5.60/kg paid to secure producer group lambs. A glut in supply has not materialised in the UK, which often happens in July. This is helping to maintain the strong prices and export values.

Spring lambs in both the UK and Ireland have been marketed quicker and lighter than usual, with many farmers taking advantage of the strong prices.

This means supplies are just meeting demand week by week, with no surplus available to dampen the trade. The supply/demand balance seems to be falling in farmers’ favour this week and is reflected in the factory quotes with the main contenders increasing base quotes.

Kepak are driving on lamb prices this week, with their quote of €5.45/kg excluding bonuses. This is a jump of 10c/kg on last week’s returns.

Of the remaining export plants, Kildare Chilling increased its base to €5.40/kg followed by Irish Country Meats, which has increased its quote by 10c/kg to a base of €5.30/kg.

IFA national sheep chair John Lynskey said factories are having to pay substantially more than quoted prices to get numbers. Prices paid for cull ewes are also strong, with some farmers securing €3.00/kg to a weight limit of 40kg. Prices of €2.85/kg to €2.95/kg to 43kg are common.

In the North quotes remain unchanged at £4.30/kg (equiv. €5.07/kg including VAT) but 5p to 10p more is being paid.

Exports

Improved exports could be one reason for the improved prices paid for lambs this year.

Irish lamb exports have increased significantly this year to both EU and non-EU markets.

Because supplies of lamb coming from New Zealand are tighter this year, both Ireland and Spain are enjoying greater access to non-EU markets.

According to an ADHB report, this year Ireland exported 445t of lamb to Hong Kong after having been negligible in the first four months of 2016.

Exports to Switzerland virtually doubled to 440t. Ireland has also started to export product to South Africa and Vietnam. Shipments to EU markets were also up by 12%, which contrasts with a 3% decline in Spanish shipments to EU markets.

Ireland increased its trade by 4% to its largest market, France, which accounted for almost one-third of its exports. There was a 4% increase in shipments to the UK. Trade was up by almost 40% to its smaller volume markets of Sweden and Germany.