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Lamb prices have fallen by up to 40p/kg this week, wiping more than £8 per head off the value of a 21kg carcase.
By mid-week processors have reduced their base quotes to 400p/kg, and farmers report they are struggling to negotiate on price. Where deals are being offered, prices are again limited to 5p to 10p/kg above base.
Key to the drop in lamb prices is the closure of marts this week. Without that competition, processors are in a stronger position, although sources also point to a slowing of demand in key export markets on the continent.
The fear among producers is that there will be an over-supply of lambs coming onto the market in the week ahead as marts re-open, and the shortage of grazing starts to really bite.
Fat ewe prices have also eased this week with marts closing and more farmers offloading ewes after weaning. Prices are back by £10 to £16 per on average at sales held at the weekend.
Lamb prices at plants operating south of the border are also down this week with €5/kg on offer, which converts to a sterling equivalent of 417p/kg.
Beef
Cattle prices are also easing as supplies of finished animals increase. Base quotes range from 350p to 358p/kg, with deals above base price limited to specialist finishers killing cattle on a weekly basis.
With processors operating on a shorter kill week, cattle agents have been able to manage supplies and most indications are that plants are now fully booked for next week.
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