The immediate future of lamb prices is very much a numbers game. Some of the larger export plants have moved to pull back base quotes.

Prices paid are a much different story, with most producers still securing €6.00/kg to €6.10/kg.

This quote reduction is being viewed as an attempt to prematurely drop lamb prices, despite numbers remaining on the balance. Their attempts will depend on supplies over the next few days.

Last week, the total lamb kill was 42,920 head, running 4,405 head behind the same period last year. This deficit has been a common trend in recent weeks and has helped bolster prices, as factories work hard to secure any lambs that do come on the scene.

Higher numbers are expected to come out from now on, as weaning takes place on farms. However, the extremely tough spring took its toll on lamb supplies and performance, which continues to have an effect.

Kepak Athleague, unlike the other main plants, has held its base quote at €5.90/kg. Kildare Chilling and Irish Country Meats have dropped their quotes by 20c to 30c to a base of €5.70/kg (excluding bonuses). Dawn Meats has a base of €5.80/kg, with Ballon Meats not quoting this week. Moyvalley has reduced its base price by 10c/kg.

IFA national sheep chair Sean Dennehy said lamb supplies are not that plentiful, with factories having to pay well above quoted prices to get supplies.

Dennehy said: “Some factories are adopting a very irresponsible approach by quoting low prices to try to undermine the market and panic farmers into selling.” He said farmers should select lambs carefully and only move lambs as they become fit.

Cull ewes

The cull ewe kill is starting to increase. The ewe and ram kill was 8,560 head last week, up over 1,000 head on the week previous.

Quotes are ranging from €2.80/kg to €3.10/kg. General prices paid range from €3.10/kg to €3.20/kg.

Northern Ireland

Northern plants are also attempting to unsettle the trade. Last week’s kill increased 787 head to 7,095 sheep.

Dunbia reduced its quote by 10p/kg to £4.85/kg or the equivalent of €5.52/kg at 87.9p to the euro and €5.82/kg including VAT at 5.4%, while Linden Foods cut its quote by 35p/kg to £4.75/kg (€5.70/kg incl VAT).

Sellers competing at the top of the market continue to negotiate £4.90/kg (€5.88/kg incl VAT) or higher.

The number of sheep moving south for direct slaughter increased 1,327 head to 5,799.

Tight British sheep supplies are underpinning prices, with the AHDB reporting an average R3 price of £5.40/kg (€6.48/kg).

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