Factories have reduced lamb base quotes by 20c/kg to 30c/kg in the space of a week.

It is expected that farmers will be paid €4.80/kg to €4.90/kg including bonuses for Thursday, but agents are trying to dampen expectations and talk down the trade further.

Factories point to reduced demand on continental Europe for lamb. They claim that the number of lambs exported from the UK has increased substantially and that poor skin prices are also having a negative effect. Factory lamb prices in the marts were also negatively affected. Factory lambs weighing 45kg to 48kg are making €90 to €100, or €45 to €52 over the weight. This is a price reduction of €5/head to €8/head on average compared to last week.