Spring lamb producers received a much-needed price lift this week as processors increased base prices by as much as 20p/kg, with the top quotes now on 480p/kg.

This has added £4.20 on to the value of finished lamb, which now stands at £100 for a 21kg carcase. Indications are that there are further price rises to come as local factory agents are facing increased buying competition in marts and from southern processors.

The mart trade has seen the biggest increase in prices over the past seven days, rising by £5 to £10 per head. Good-quality fleshed lambs are now making £102 to £106 at several marts, with some exceptional lots selling to £110.

On a 21kg carcase, the live trade is paying the equivalent of £4.85/kg to £5.05/kg, giving sheep farmers with top-quality animals a viable alternative when marketing lambs.

One key reason behind this price lift is the weakening of sterling against the euro, which has moved to €1 = 86p. This has given buying agents working for southern processors an edge over their NI counterparts.

The other factor affecting prices is the growing demand for sheepmeat ahead of the Ramadan festival.

The four-week festival, which gets under way this weekend, is a crucial period for the local sheep trade as it normally brings higher prices for both lambs and fat ewes. Prices for fat ewes are also on the rise this week, having experienced a sluggish period since Easter. Good-quality lowland ewes carrying flesh are selling from £100 to top prices of £120, with plainer animals selling back to £80.

Domestic trade

While the local sheep trade is improving, the trade south of the border has also strengthened on the back of increasing demand ahead of Ramadan.

Prices at southern plants this week are €6.20/kg, which converts to a sterling equivalent of £5.05/kg.

With NI plants lagging behind on £4.80/kg, there will be an increase in the number of lambs moving south for processing unless local prices improve.

While Ramadan will only affect sheep prices for a short period, sheep producers should be aware they are in a stronger position to negotiate on price and consider their options before selling.