Factory base quotes have increased by 10c/kg on average over the last week, but remain relatively slow to rise in the context of how the trade performed during the corresponding period in 2021.

Reports indicate that prices paid to producers handling large numbers or those trading regularly have increased at a faster rate, with some finishers securing 15c/kg to 20c/kg more week on week.

Prices at the higher end of the market range from €6.40/kg to €6.55/kg or higher in cases including deals where allowances on transport costs are taken into account.

These prices are running well ahead of base quotes in most plants, which range from €6.10/kg to €6.15/kg plus the respective quality assurance bonuses.

The exception to this is Kildare Chilling, which continues to set the pace with a 10c/kg increase putting its base quote on €6.30/kg plus 10c/kg quality assurance bonus.

This means that farmers trading quality assured lambs in Kildare are receiving returns of €6.40/kg without negotiating on price.

In contrast, some producers with lower negotiating power are struggling in other parts of the country to secure returns above €6.25/kg to €6.30/kg. Reports indicate that some producers are opting to showing lambs live where quotes are not reflective of the trade.

Last week’s kill rebounded strongly following a day’s less processing in the previous week. Throughput was recorded at 63,415 head.

The ewe and ram kill has dropped below 10,000 head and at a figure of 9,427 reflects a tightening in numbers.

Numbers are still 2,000 head higher for the corresponding week year on year, but the appetite for ewes has been firmer this year.

Prices in some plants have edged up by 10c/kg, ranging from €3.00/kg to €3.30/kg in the main factories, while top prices continue to hit €3.40/kg to €3.60/kg.

The firming in the trade is also apparent in mart sales.

As touched on last week, the trade in Britain increased significantly last week and this is providing more scope for movement in Irish prices. This is reflected in the latest AHDB report showing the average standard quality quotation (SQQ) deadweight price rising by an average of 22p/kg last week to reach £5.35/kg.

This is the equivalent of €6.11/kg at Wednesday afternoon’s exchange rate of 87.5p to the euro.

Deadweight prices have continued on an upward trend, with reports of £5.50/kg (€6.28/kg) and higher paid this week. This is in contrast to liveweight SQQ prices easing by 10p/kg at the start of the week and recorded at £2.42/kg (€2.77/kg).

Base quotes in Northern Ireland are unchanged, ranging from £5.00/kg to £5.10/kg (€5.71/kg to €5.83/kg).

There are signs of more competition in the market, helped by agents purchasing on behalf of southern plants possessing greater purchasing power and this is pushing top prices to £5.20/kg to £5.25/kg (€5.94/kg to €6/kg) with more producers paid to 22kg carcase.