Lamb prices have faced further significant downward pressure this week, with base quotes for Thursday falling by 20c/kg to 30c/kg.

A cut of 30c/kg has occurred in most plants, leaving the base quote on €7/kg plus the respective quality assurance payment. This leaves prices lagging 50c/kg to 60c/kg behind returns secured seven to 10 days ago.

Kildare Chilling have provided a slight chink of positivity with their base quote of €7.20/kg, plus 10c/kg QA payment increasing by 10c/kg since the start of the week.

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This is generating an additional 10c/kg return for producers trading directly with the plant and an increase of 3c/kg to 5c/kg for producer groups trading in other plants and operating a payment mechanism of the average of a number of quotes.

A significant number of lambs are trading within a price range of €7.20/kg to €7.30/kg, with top prices now rising to a range of €7.35/kg to upwards of €7.40/kg. The trade is being helped by a considerable tightening in supplies coming on stream.

This was expected following a push by producers in recent weeks to draft lambs for the Islamic religious festival of Eid al-Adha, evident in the last two week’s kill of 62,123 head and 70,000 head, respectively.

The number of sheep slaughtered last week were front loaded heavily towards the start of the week, with throughput falling significantly since Thursday.

Factories have finished quoting for hoggets with numbers falling to a low level. Prices of €6/kg have are still being reported for fleshed hoggets delivering lighter carcase weights.

Cuts ranging anywhere from 1/kg to €2/kg are being imposed on hoggets killing at excessive weights or lacking flesh cover.

Some plants are paying hoggets which have set permanent teeth and which will kill out at excessive weight at, or slightly above, ewe price.

Quotes for ewes have also reduced and now range from €3.00/kg in the two Irish Country Meats plants to €3.30/kg plus 10c/kg QA in Kildare and €3.40/kg all-in in Ballon Meats.

British trade

Markets have performed slightly better than anticipated, with prices in Britain steadying following similarly sharp price cuts and increasing by 5p/kg to 15p/kg midweek.

This leaves reported prices in the region of £6.10/kg or the equivalent of €7.13/kg at an exchange rate of 85.6p to the euro.

The trade in Northern Ireland has slipped by 30p/kg, with quotes for Thursday at £5.70/kg (€6.66/kg).

Reports indicate that factories are working hard to try and bring top prices paid to £5.80/kg but are struggling with numbers being tight.

Some plants are keen to get numbers on hand before trade disruptions next week, but are also coy knowing that many marts will not be holding sales.