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Upward momentum in the sheep trade continues on the back of demand exceeding supplies coming on stream.
Kildare Chilling, Dawn Meats and Kepak have all added another 10c/kg on to their base quotes, which now range from €5.45/kg to €5.60/kg.
When bonuses for quality assured (QA) lambs are included, it leaves quoted prices at €5.55/kg to €5.70/kg.
The two ICM plants are not quoting, while Ballon Meats is on an all-in quote of €5.60/kg.
Starting prices for hoggets at the lower end of the market range from €5.70/kg upwards.
Regular sellers or those with greater negotiating power are pushing returns to €5.75/kg to €5.85/kg at carcase weight limits of 23kg. Sellers need to watch the market closely, as prices continue to move quickly.
Others are getting transport costs covered, which adds an extra 10c/kg to 15c/kg to the price.
Reports also suggest many producer groups are negotiating directly on price with factories, as they are not happy that the payment mechanism of an average of quotes and bonus payment is reflecting prices being paid for sheep delivered to tight specification.
Some plants are also willing to pay extra for lighter-carcase hoggets killing in the region of 20kg to 22kg.
This is apparent in some mart sales, with agents willing to compete stronger. They still want all the sheep they can get, but on a deadweight price per kilo required to cover costs and leave a margin, some of these hoggets would need returns of greater than €6.00/kg.
The trade is benefitting greatly by numbers tightening in Britain and prices also moving on sharply there.
The latest AHDB price report shows supplies down 10% on the previous week and average prices rising by some 25p/kg.
This leaves R grading hoggets at £5.00/kg or the equivalent of €5.95/kg excluding VAT and €6.27/kg including VAT at 5.4%. Reports show prices rising again by 5p/kg to 10p/kg this week.
The northern trade is strengthening, but at a slow level, leaving a wider gap to prices paid in Britain.
Quotes are £4.45/kg, which is the equivalent of €5.30/kg at 84p to the euro and €5.58/kg including VAT at 5.4%.
Sellers with significant numbers are securing £4.55/kg (€5.71/kg incl VAT), with prices also strengthening as the week progresses.
Northern sheep continue to be an important source of throughput, with numbers coming south steady on the previous three weeks and recorded last week at 7,848 head.
Ewe supplies remain tight, but factories appear to be adopting an approach of killing whatever comes their way and maintain quotes at €2.90/kg to €3.00/kg. Prices range from €3.10/kg to a top of €3.25/kg to €3.30/kg.
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