The sheep trade continues to record swift upward movement. Prices increased by 5c/kg to 10c/kg over the weekend and have recorded a similar increase since the start of the week.

Quotes for Thursday have increased by 20c/kg on last week’s levels, with Kepak Athleague and Kildare Chilling continuing to set the pace with respective quotes of €5.45/kg (+5c/kg QA) and €5.40/kg (+10c/kg QA).

Dawn Ballyhauins has recorded the largest jump of 30c/kg to €5.30/kg and joins the two ICM plants and the all-in quotes offered by Ballon Meats and Moyvalley Meats.

Sellers handling large numbers have been cautious to keep a continuous eye on the trade given the rate at which prices are lifting.

Reports on Wednesday showed top prices ranging from €5.50/kg to €5.60/kg, with sellers handling smaller numbers generally securing 5c/kg to 10c/kg lower.

IFA national sheep chair Sean Dennehy said the lamb trade is moving fast and sellers need to make sure they are getting full value for their stock, with returns of €5.50/kg widely available and higher being negotiated.

Ewe quotes are steady at €2.90/kg to €3.00/kg, with general prices ranging from €3.00/kg to €3.15/kg and as high as €3.30/kg paid for large numbers.

Price in Northern Ireland and Britain have also jumped significantly.

Northern plants are quoting £4.50/kg, which at Wednesday’s exchange rate of 88.3p/kg equates to €5.10/kg or €5.37/kg including 5.4% VAT.

Regular sellers with greater negotiating power are securing prices for Thursday and Friday of £4.60/kg (€5.48/kg) and higher.

The number of sheep imported south for direct slaughter in the last week was recorded at 9,526, an increase of over 450 head on the week previous.

Britain

Last week’s R3 British lamb price, as reported by the AHDB, averaged at £4.66/kg (€5.56/kg).

Prices have continued to push upwards, with prices now exceeding £4.70/kg and heading towards £4.80/kg at the top of the market.

Last week’s AHDB review and outlook webinar forecast breeding ewe numbers to remain static over the next two years, with an increase of 1% predicted on 2017 levels.

The 2018 lamb crop is forecast to be slightly lower due to poor weather throughout the breeding season.

However, production levels are set to rise on the back of a higher carryover of hoggets into spring 2018 and higher throughput of cull ewes.

Production figures for 2018 are set to increase to 317,000t, up 6.3% on 2017 levels.

Possible implications of Brexit remain a big unknown and are making longer-term forecasts more difficult.

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