The sheep trade continues to enjoy upward momentum. Quotes have increased by 10c to 25c/kg on last week, with Kildare Chilling remaining in pole position with its base of €5.40/kg plus 10c/kg quality assurance (QA) bonus, a rise of 10c/kg on last week.

It is followed by Kepak Athleague, which has increased its base quote by 25c/kg to €5.25/kg plus 15c/kg QA bonus.

Dawn Meats base quote has increased 10c/kg to €5.20/kg plus 10c/kg QA, while the two Irish Country Meats plants are not quoting for lamb for Thursday.

Meanwhile, Moyvalley Meats and Ballon Meats are offering all-in quotes of €5.40/kg and €5.30/kg respectively.

A high percentage of QA lambs traded by individual sellers with lower negotiating power are now trading in the region of €5.40/kg to €5.50/kg, with regular sellers trading upwards of €5.50/kg.

Producer groups and producers trading at the upper end of the market are securing returns of €5.55/kg to €5.60/kg, with some prices rising to the equivalent of €5.65/kg when bonus payments and allowances on transport costs are factored into the equation.

IFA national sheep chair Sean Dennehy said: “Lamb prices are continuing to rise with prices having moved up to €5.50/kg up to 23kgs. There are some deals rising as high as €5.70/kg including QA and producer group bonuses and payments for transport”.

The trade is very much benefitting from the dynamics of supply and demand combining with favourable market conditions.

Last week’s sheep kill was recorded at 50,962 head, a reduction of 5,972 on the previous week. It comprised 43,426 lambs, which is running 1,444 head above the corresponding week in 2019, while the ewe and ram kill of 7,536 has tightened even further and is running 2,628 head behind the corresponding week in 2019. Ewe prices are now ranging from €2.90/kg to €3.15/kg, with dealers possessing strong negotiating power.

Market dynamics are being helped by a strong trade in the UK and across EU markets. The latest AHDB price report records R grading lambs averaging in the region of £4.55/kg or the equivalent of €5.38/kg at a stronger exchange rate of 84.5p to the euro and the equivalent of €5.68/kg including VAT at 5.4%. Reports indicate prices continue to strengthen.

Northern Ireland

Quotes in Northern Ireland have increased by 5p/kg to 10p/kg and range from £4.30/kg to £4.35/kg (€5.09/kg to €5.15/kg). Reports show factories are having to pay 5p/kg to 10p/kg higher to secure deals, with agents purchasing on behalf of southern plants very active in marts and in direct farm sales. It is estimated that last week’s imports of lambs south for direct slaughter will remain in excess of 9,000 head.

Read more

SheepWatch: brisk trade as numbers tighten