The sheep trade for finished lambs is currently experiencing a period of uncertainty while markets adjust to normality following close to record kills for the Islamic festival of Eid al-Adha.

Last week’s sheep throughput was recorded at 77,304 head, which was a further increase of close to 3,000 head.

Reports indicate that purchasing remained strong right up until Monday, with factories moving large volumes and clearing out stocks.

This is leading to relatively strong demand this week, but factories are much more cautious in their purchasing and are trying to ease prices back.

An outbreak of COVID-19 in Kildare Chilling has also removed it from the market for a few days, while Kepak Athleague reports that it has lambs purchased for Thursday’s kill and will be back quoting for lamb for Friday’s kill.

This leaves just three quotes in the week’s table. Dawn Ballyhaunis is quoting a base of €5.00/kg plus their 10c/kg quality assurance (QA) payment, while the two ICM plants in Camolin and Navan have dropped their lamb quote to €4.80/kg plus 10c/kg QA bonus.

Reports on Wednesday show lambs trading anywhere from €5.00/kg to €5.10/kg where farmers are trading individually and from €5.15/kg to €5.25/kg where lambs are traded through groups or from sellers with strong negotiating power.

It is likely that the kill will fall back significantly in the coming weeks, with reports from producer groups showing this week’s throughput could be back by 30% to 40% on last week’s levels.

There is no pressure on producers to sell at the moment

The fact that farmers drafted lambs at lighter weights in recent weeks is likely to also see a lull in drafting on some farms, which will now opt to let lambs run into heavier weights.

The extent to which this occurs will depend on what level markets settle at in the coming days.

IFA national sheep chair Sean Dennehy said: “Factories are paying €5.10/kg to €5.30/kg and as high as €5.40/kg when bonuses are included.

“Any price cuts now are totally unjustified. There is no pressure on producers to sell at the moment and producers should weigh up the sales avenue that will deliver the greatest return,” he said.

Meanwhile, Northern Irish factories also recorded a bumper kill last week, with throughput recorded at 11,901 head.

Quotes have also come under pressure, with plants offering a price of £4.45/kg for Thursday. This equates to €4.92/kg at a sterling to euro exchange rate of 90.4p.

Factories are also keen to replenish stocks and are happy to stay processing at a relatively high level. This is leading to 5p/kg to 10p/kg higher prices being paid to secure sales.

The number of sheep imported south for direct slaughter last week reduced by over 2,500 head to 8,546.

Part of this reduction was Northern Irish factories increasing activity in the market along with higher than normal throughput in recent weeks exhausting supplies.

Ewe kill

There is more interest in ewes in some plants, with the main focus in recent weeks on lamb throughput.

This is reflected in the ewe kill comprising just 7,350 head out of last week’s throughput of 77,304 head.

The two ICM plants have increased their ewe quote by 10c/kg to €2.60/kg.

Prices reported at the top of the market as paid to regular sellers range from €2.70/kg to €2.80/kg. Throughput of ewes and rams for the year to date is running 21,248 head or 9% lower.