The sheep trade is starting the week in a solid position, with prices remaining on an upward trajectory.

Kildare Chilling continues to set the pace and has increased its base quote by 10c/kg to €5.40/kg plus a 10c/kg quality assurance (QA) bonus. Other plants continue to quote a base in the region of €5.20/kg, but are paying significantly higher to get lambs.

A high percentage of lambs slaughtered on Monday have been purchased at returns of €5.40/kg to €5.50/kg.

Transport costs

There are small numbers of lambs being traded from producers with lower negotiating power or without QA status below this price range, while, likewise, farmers selling through producer groups or at the top of the market are securing higher by means of bonuses on conformation or factories covering transport costs.

Some producer groups and regular sellers are also securing a higher carcase weight limit of 22kg.

Factory quotes are running 70c/kg to 80c/kg ahead of the corresponding week in 2019. This equates to an increase of €14 to €16 per lamb and it is having a hugely positive effect of adding much more confidence into the trade for replacements and store lambs.

Throughput remains strong and factories are happy to operate at this level.

Reports suggest the volume of sheepmeat processed on a per-head basis continues to lag below recent years, with farmers keeping lambs moving to take advantage of the positive trade.

Northern trade

Southern factories continue to utilise the supply of sheep from Northern Ireland, with agents active in mart sales and in purchasing direct from farms.

Early estimates point to in excess of 10,000 sheep possibly being imported south in the last week. This is also helping to keep a firm floor under the northern trade, with factories failing in their attempts to ease prices back.

Reports show lambs moving in general from £4.45/kg to £4.55/kg or the equivalent of €4.96/kg to €5.07/kg at 89.7p to the euro. Regular sellers and some groups are securing an extra 5p/kg from the market.

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In pictures: flying trade at Cooley Peninsula one-day sale