The prospects for lamb prices to hit €7/kg for Christmas are bleak, with factories armed with higher throughput levels and under no pressure to increase prices to attract higher numbers forward.

Last week’s kill, recorded at 62,393 head, was 2,713 higher than the previous week (and similar year on year), which in turn was over 6,000 head higher than the previous week.

There is a firm appetite for lambs, but this increase in throughput is allowing factories to fill Christmas orders with relative ease.

Base quotes are unchanged, with Kildare Chilling’s base of €6.40/kg continuing to lead the quotes table by virtue of its 10c/kg quality assurance bonus, with Ballon Meats quoting €6.40/kg all in.

The two ICM plants remain on a base of €6.30/kg, with reports indicating plants not quoting are starting negotiations on a similar base.

Agents have tried to pull prices back to €6.45/kg to €6.50/kg for lambs traded from producers with no real negotiating power.

Lambs traded through producer groups or from regular sellers handling larger numbers are generally in the region of €6.60/kg to €6.65/kg, excluding conformation bonuses, where applicable, or allowances on transport costs.

At the top of the market, prices of €6.70/kg have been paid, but this has been more challenging to secure and confined to those handling very large numbers.

These sellers are also generally securing an extra 0.5kg carcase weight allowance, with 22.5kg the standard payment terms.

Ewe quotes are also unchanged, with the main processors working on a quote of €3.10/kg to €3.20/kg. There is not much room for manoeuvre for farmer sellers, with higher prices generally confined to agents.

There continues to be a differential between prices paid between these plants and those specialising in the ewe trade and this is reflected in Ballon Meats quote of €3.40/kg for ewes that meet their desired specification.

It is important to check carcase weight limits, as these vary from 40kg to 45kg, while some plants may pay to higher weights for a small number of ewes traded as part of a larger consignment.

Northern trade

The trade in Northern Ireland, in contrast, is brighter, with quotes increasing by 5p/kg to a base quote of £5.30/kg.

This is equivalent to €6.17/kg at Wednesday afternoon’s stronger exchange rate of 85.9p to the euro.

Regular sellers and groups are securing returns of £5.40/kg to £5.45/kg (€6.29/kg to €6.35/kg).

The keener appetite shown by factories has slowed numbers exported for direct slaughter in southern plants, with last week’s figure of 6,344 head down 919 on the week.

The differential between Northern Ireland and British prices has tightened in recent weeks. The latest price report from AHDB shows British prices averaging £5.52/kg (€6.42/kg).