For weeks, factory base quotes have been standing still, despite prices paid slowly moving upwards. This strategy allowed factories to hold prices for infrequent sellers and producer groups.

However, the glass ceiling has finally cracked just enough for Kepak to increase its base quote by 10c/kg to a base of €4.65/kg (+5c quality assurance (QA)) for Thursday.

Unfortunately, none of the other main export plants made a move, but one would hope that this creates a domino effect for the rest to follow.

Kildare Chilling remains on its quote of €4.60/kg (+10c QA) and Irish Country Meats held its quote of €4.50/kg (+10c QA).

Ballon Meats and Moyvalley have also held steady, with quotes of €4.70/kg and €4.60/kg respectively.

Kepak’s increase in quotes is welcome news, as it confirms reports that the trade has been improving. Up to now, most farmers have been securing prices of €4.65/kg to €4.70/kg. Higher prices of €4.75/kg and €4.80/kg have been becoming more attainable for farmers with numbers.

Producer groups are securing prices up to €4.80/kg and higher in some instances if you take transport into account.

There is no doubt that bargaining power is falling back into the hands of farmers with a good number of fleshed lambs.

Competition between factories is likely to intensify, especially if numbers tighten over the next few weeks. Weight limits are now up to 22kg, which is also a boost, but farmers should not become complacent and allow weights to creep up too much.

Frequent drafting and weighing, as well as handling lambs to ensure there is adequate flesh cover, are a must.

North

So far, the total number of lambs sent from the north for direct slaughter in the south is up 10% this year.

A total of 327,470 head were imported from the north this year for direct slaughter (10,130 head last week).

A weak sterling has made these lambs more competitive this year.

Linden Foods increased its quote by 5p/kg this week to a base of £3.75/kg (equivalent of €4.46/kg including 5.4% VAT). Dunbia Dungannon remains on £3.70/kg (€4.44/kg including VAT).

Cull ewes

The cull ewe trade is variable. Some farmers with a number of heavy fleshed ewes are securing €2.50/kg to €2.60/kg. However, a lot of ewes are moving at lower prices of €2.40/kg. Hopefully, the improvement in the lamb trade will translate to better returns for ewes.

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Small improvements in the lamb trade

Cattle quotes hold at 352p/kg with deals for heifers