An extended period of downward pressure on sterling against the euro, with the euro worth 92p this week, continues to make NI an attractive market for factory agents from the Republic of Ireland to source lambs.

Despite a strong trade in the mart, after a price rise last week, local meat processors have moved to take control of NI prices ahead of a key period of demand, cutting base quotes by 10p/kg. Factory quotes started the week on 415p/kg but slipped to 405p/kg by midweek.

Processors point to a rise in the number of lambs coming on to the market, which is coinciding with peak seasonal supply.

Weather

Wet weather has also played a part in the higher throughput of lambs with factory agents reporting an increase in farmers looking to offload heavier lambs due to deteriorating ground conditions.

However, speaking to the Irish Farmers Journal, several sheep farmers insisted that processors are merely seizing the opportunity to control price as they have a guaranteed supply of sheep coming from some producer groups.

Producer groups are frustrated at the price cut, pointing to processors who are still paying 10p/kg to 15p/kg above base to larger, independent suppliers.

While prices at meat plants have eased, there is still strong demand for sheep in the live trade. Good-quality fleshed lambs are still selling from £90 to £96 this week.

Some exceptional lots at heavier weights sold as far as £100 in the early stages of the week. Prices eased by mid-week as sale numbers increased.

Prices are still above £90 which is the equivalent of 428p/kg and better on a 21kg carcase, keeping the mart trade well ahead of factory prices and providing a valid market alternative for sheep farmers.

Live exports

NI lambs are being used to make up the shortfall in lamb in the Republic of Ireland as plants there face growing competition from live exporters.

Live shipping of sheep got under way last week, as exporters source sheep ahead of the Eid-Al-Adha festival in late September.

The growing demand from Irish processors saw higher numbers of NI lambs moving south of the border earlier this week at prices of 420p/kg to 430p/kg.

Plants in the Republic of Ireland have tried to cut quotes by 5c/kg but they were still paying €5 to €5.10/kg by midweek, which is the sterling equivalent of 430p/kg to 440p/kg.

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