The lamb trade in factories has burst into life since the start of the week, with prices increasing by 15c/kg to 20c/kg in many cases and producers trading at the top of the market securing returns of €5.50/kg to €5.60/kg.

Looking at the quotes table, Kildare Chilling has maintained its recent upward movement with another increase of 10c/kg, leaving it on a base price of €5.30/kg plus 10c/kg quality assurance (QA).

The two ICM plants in Camolin and Navan have increased their base quotes by a massive 30c/kg to a base of €5.20/kg plus 10c/kg QA. The two western-based plants are not quoting for Thursday, but reports indicate a similar increase in price.

There is still a marked difference between what factories are quoting and paying to secure large batches of sheep. Intense competition between plants has seen prices at the higher end of the market jump to €5.50/kg to €5.60/kg, with the trade particularly strong in the northwest.

Regular sellers, producer group members or those with significant numbers on hand are securing returns of €5.45/kg to €5.50/kg for the second half of the week and are also having some success in securing a higher carcase weight limit of 22.5kg, while individual sellers handling lower numbers with less negotiating power are securing returns of €5.35/kg to €5.40/kg.

Last week’s sheep kill was recorded at 58,967, an increase of 7,139 on the previous week which was a four-day kill. Throughput comprised of about 50,000 lambs and 8,783 ewes and rams and is running 2,973 head below the corresponding week in 2019.

Factory concerns

A number of factories report that the increase in price is supply-driven rather than market-driven and are raising concerns as to the rate at which price has jumped.

They are keen to highlight the importance of delivering lambs to the correct specification, with product outlets heavily reliant on the retail trade at present. Reports suggest two plants in the east of the country could be cutting back kill days next week.

A couple of plants have also cited an increase in the number of overweight and over-fleshed lambs coming on stream, while others continue to advise caution when drafting lambs with a questionable flesh cover and recommend selling these lighter lambs live for further feeding.

NI trade

The trade in Northern Ireland is also increasing, although quotes of £4.40/kg (€4.89/kg) are not reflective of current market prices.

Reports indicate that prices range anywhere from £4.55/kg to £4.70/kg or higher to close deals and ward off interest from southern buyers.

The mart trade has also exploded into life, with agents purchasing on behalf of southern plants driving the trade.

The British trade is static with the SQQ live price surrendering last week’s 10p/kg gain.