Markets have stabilised after some falls in the past number of weeks and may be starting to harden again.

The majority of farmers are now securing €5/kg for their lambs. Some frequent sellers are securing €5.05/kg and producer groups with strong bargaining power secured as high as €5.10/kg.

Farmers say prices paid under €5/kg is the line in the sand that they will not accept and are successfully resisting this.

Base quotes remain reasonably steady, with some increases. Interestingly, both ICM plants increased their base quotes by 10c/kg to a base of €4.80/kg excluding bonuses. Kildare Chilling is quoting €4.90/kg excluding bonuses and Kepak Athleague has upped quotes by 5c/kg to a base of €4.95/kg excluding bonuses.

There was another increase in the sheep kill of 3,491 head that resulted in a cumulative kill of 59,935 head. Despite the increased kill, prices are holding steady and there are some signs of prices even hardening over the next few days.

The improved weather and market conditions in France seem to be making a difference here and are helping to keep prices at a level that farmers hope will be maintained or improved on over the next few weeks.

Reports suggest factory agents were more active for lambs in southern marts and this may have been driven by reduced activity in the North, where the July holidays were taking place.

IFA sheep committee chair John Lynskey said demand for finished lamb supplies in the factories is strong and farmers are getting €5.00/kg on average.

Cull ewes

The cull ewe trade has been brisk in marts, mainly driven by factory agents.

Again, quotes range from €2.30/kg to €2.50/kg this week, but higher prices of up to €2.80/kg are being paid to farmers. In the marts, farmers with fleshed ewes are being paid €105 to €125/head.

France

French school holidays began last Wednesday. Therefore, purchases are declining in Paris and other large French cities. The weather improved in Paris over the weekend and is expected to continue. This will hopefully have a positive impact on trade.

Irish and UK lamb is trading at €5.40/kg for number ones, while number twos are quoted at €5.20/kg on the Rungis market.

Promotions

Bord Bia says promotional activities around the EU co-funded campaign ‘LAMB – Tasty, Easy, Fun’ will be intensified over the coming weeks as part of an initiative to drive increased awareness among younger consumers.