The sheep trade is in the midst of peak buying for the Christmas trade, with factories competing with keen demand from butchers and wholesalers.

There is a particularly strong demand for quality assured (QA) lamb to fill domestic supermarket orders with factories especially keen to secure large batches.

This is opening up a large differential between prices paid between, and also within, factories.

At the top end of the market, prices of €5.80/kg to €5.90/kg have been reported for very large consignments of lambs, with some of these deals also tying into supplies for the coming weeks.

Quotes are unchanged and this leaves producer groups and regular sellers handling significant numbers trading in the region of €5.70/kg to €5.80/kg, while individual sellers handling smaller numbers and possessing lower negotiating power are trading in the region of €5.55/kg to €5.65/kg.

Carcase weight limits are generally being confined to 22.5kg, although some plants are willing to pay to 23kg rather than increase prices paid.

Wholesale buyers are also typically paying to 23kg carcase weight.

The butcher, wholesale and mart trade is also a good alternative to consider for farmers struggling to negotiate.

IFA sheep chair Sean Dennehy advised farmers to keep a good grasp of the trade, with prices moving upwards and quotes not reflective of the strength of the market.

He said: “Producers with significant numbers of sheep are in a strong selling position. Lambs fit for slaughter should be kept moving, but producers should ensure they are receiving the best price available.

“Prices of €5.80/kg to €5.90/kg and the equivalent of €6/kg when bonus payments or transport costs are included have been secured by those handling large numbers this week,” he said.

The increase in prices paid at the higher end of the market has attracted higher numbers out, with last week’s kill increasing by over 2,000 head to reach 54,220.

Agents purchasing in Northern Ireland on behalf of southern plants are also very active, with 8,367 sheep imported south for direct slaughter last week, an increase of 741 head on the previous week.

Prices in Northern factories are solid at £4.70/kg to £4.80/kg or €5.21/kg to €5.33/kg at 90p to the euro. Regular sellers are securing an additional 5p/kg above quoted prices.

Ewe trade

The ewe trade is also edging upwards, with numbers tight and a bit more interest shown in ewes by factory agents.

Prices typically range from €2.75/kg to €2.85/kg for ewes traded from producers with average negotiating power.

Regular sellers handling large numbers are pushing for returns of €2.90/kg to €3.00/kg and this is especially evident in agents having greater purchasing power in live sales.