The lamb trade continues to edge upwards, with a strong appetite among all factories for lambs. This is shown in last week’s kill increasing by 8,354 head to reach 52,586 head.

This is despite the temporary closure of Kildare Chilling, which many had feared would reduce throughput and put downward pressure on price.

The opposite has occurred, with prices actually edging upwards in recent weeks and rising by another 5c/kg in the last week.

Many predict prices would likely be even higher were Kildare Chilling also competing in the market over the last week. Farmers will be glad to see that the company is hoping to gradually resume processing again from Thursday.

There is a growing differential between prices quoted and what is being secured by sellers with significant numbers on hand.

General prices paid to individual sellers for quality assured (QA) lambs range from €5.15/kg to €5.20/kg.

Regular sellers and producer groups handling large numbers are securing returns of €5.25/kg to €5.30/kg, while select deals are rising 5c/kg higher and even greater where allowances on transport are factored into the price.

Producer groups and farm organisations have come out this week and are strongly criticising factories for either not offering an official quote or offering a far lower quote than what is generally being paid to keep prices down.

This issue has come to the fore since Kildare Chilling has closed its doors, with the plant consistently quoting at the higher end of the quotes table.

IFA sheep chair Sean Dennehy said: “At this stage, the base price is so far removed from reality, it’s unfit for purpose.

“When the base price is taken as it is and a farmer is not quality assured, the extent to which the base price is out of kilter is clearly evident.

“The IFA has taken this up with Meat Industry Ireland, as it reduces the price to producer groups and takes advantage of sellers with lower negotiating power. Farmers need to be mindful of this and bargain hard on weight and price.”

One aspect which is evident in a number of plants is that factories are willing to negotiate more freely on price for lambs presented with a good cover of flesh.

A number of plants report an increase in the number of lambs short on flesh and just about being classified as fat class 2.

They are encouraging farmers to be mindful of this when selecting lambs, with lighter lambs short of flesh also at risk of killing below 17kg carcase weight and facing significant penalties ranging anywhere from 50c/kg to €1/kg on insufficient weight and fat cover.

Reports indicate buyers purchasing on behalf of southern plants in northern marts and in direct farm sales have been much more active in trying to secure higher numbers. The top prices reported would need returns of at least €5.20/kg to €5.40/kg to clear costs.

The number of sheep imported for direct slaughter last week was recorded at over 7,000 head and this is likely to be at least matched this week.

Northern plants are quoting a base of £4.45/kg, but, as is the case in southern plants, they are fit to give much more to secure deals and ward off interest from southern buyers.

Returns of £4.55/kg to £4.60/kg have been reported frequently in recent days, which is the equivalent of €5.09/kg, while top prices reported for Thursday and Friday are 5p/kg stronger.

Northern prices do not include a flat rate VAT addition of 5.4%.