The sheep trade has started the week in a solid manner. Some agents are reporting a marginal increase in the number of shed-finished lambs appearing and this is compensating for a tightening in the numbers coming fit off grass or forage crops.

Kildare Chilling continues to set the pace with an increase of 10c/kg to its base price being the main change at the start of the week.

This leaves the factory well out ahead in terms of quotes offered, with a base of €5.60/kg plus 10c/kg quality assurance (QA) bonus.

Negative reaction

There has been some negative reaction in recent weeks regarding the other main export-orientated sheep factories either not quoting or quoting a price which is well below the going rate.

This is curtailing returns for producer groups and, in some cases, witnessing lambs moving at prices below what is available at the higher end of the market and threatening to unsettle group participation.

It has also witnessed other groups having to abandon the normal pricing mechanism in place and negotiate on a weekly basis.

Current quotes

Prices this week range on average from €5.60/kg to €5.80/kg.

Individual producers selling small numbers occasionally and not trading in Kildare Chilling are securing returns ranging from €5.60/kg to €5.65/kg on average, with sellers handling larger numbers and selling more frequently pushing prices for quality assured lamb to €5.65/kg to €5.70/kg.

At the higher end of the market, prices paid to producers handling large numbers or selling through groups are typically ranging from €5.70/kg to €5.80/kg, with select deals at a higher price.

IFA sheep chair Sean Dennehy is advising farmers to continue to weigh up the best market outlet for the type of lamb on hand.

The butcher trade has, in some places, quietened slightly, but there is still relatively strong demand, while the trade for all slaughter-fit lambs in marts is holding firm and in cases was a bit sharper on Monday.