The sheep trade has surged upwards over the last seven days, with prices rising by an average of 20c/kg to 30c/kg.

A high percentage of sheep are now trading in the region of €6.25/kg to €6.40/kg, with regular sellers handling large numbers pushing returns to €6.50/kg in recent days.

At the top end of the market, agents or specialist finishers handling big numbers are now securing 5c/kg to 10c/kg higher to tie into deals for large batches numbering in the region of 100 lambs upwards.

Producers with sheep to sell should keep abreast of the trade given the rate of change over the last seven days.

It is a sellers’ market at the moment and those facing challenges in negotiating with factories should consider the mart trade, with factory agents, butchers and wholesalers locking horns.

The strength of demand in the market is shown in last week’s kill figures.

Throughput was recorded at a relatively strong level of 52,360 head (4,521 above the corresponding week in 2020), with factories keen to handle all sheep coming on to the market.

Demand is being driven by tight supplies in key export markets which is being influenced by lower volumes of New Zealand lamb entering the EU and reduced exports from Britain due to Brexit-related disruption in getting produce moving.

Strong retail demand

IFA sheep chair Sean Dennehy said tight supplies in key export markets and strong retail demand continues to push prices on.

He expects the recent surge in sales to remain in place as long as restrictions do and is advising farmers to keep fit lambs moving, but to sell hard, with differences of 15c/kg to 20c/kg common between and within different plants.

NI trade

The trade in Northern Ireland has jumped by 40p/kg on last week’s quotes.

Factories are now quoting a base of £5.30/kg, which is equivalent to €5.94/kg at Wednesday afternoon’s weaker exchange rate of 89.1p to the euro.

Top prices are rising to £5.40/kg to £5.50/kg (€6.06/kg to €6.17/kg), with factories taking steps to ward off strong interest from buyers, which are very active in the market to secure sheep to export for direct slaughter in southern plants.

Reports suggest lambs are moving at top prices of €6.30/kg to €6.50/kg or the equivalent when allowances on transport are factored into the equation.

The ewe trade is solid, with demand strengthening considerably.

The general run of prices for ewes ranges from €2.85/kg to €3.00/kg, with regular sellers securing returns of €3.10/kg, while those handling large numbers or trading combined lots and using lambs as a bargaining tool are securing prices of up to €3.20/kg.