It has been another highly frustrating week for sheep producers, with lamb prices suffering another cut of 20c/kg to 30c/kg.

The reduction in price has followed a similar trend to recent weeks, split between a cut at the start of the week and another midweek.

Base quotes for Thursday in the five big factories range from €6.20/kg to €6.30/kg.

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The two Irish Country Meats (ICM) Plants in Camolin and Navan are the only plants quoting a base price of €6.20/kg plus their 20c/kg quality assurance (QA) payment.

Kildare Chilling is not quoting and joins long-standing absentees Kepak Group and Dawn Meats.

The tight supply of top-quality and heavier lambs is reflected in Ballon Meats quoting a stronger all-in price of €6.60/kg.

Reports indicate that all plants are struggling to cope with a much higher percentage of their kill at lighter carcase weights.

Many factories are cutting underweight or underfleshed lambs by 50c/kg to €1/kg, while the ICM plants have increased their carcase weight paid limit from 21.5kg to 22kg since Monday 31 July.

This is a move to try to encourage producers to carry lambs through to heavier weights.

The percentage of lighter carcases in the weekly kill always increases at this stage of the year, as some producers move to draft lambs at lighter weights in an attempt to reduce their exposure to falling prices.

Performance

The current situation is being intensified by a sharp reduction in lamb slaughter performance.

Reports indicate that lambs are currently killing anywhere from 2% to 4% below normal for the time of year due to the sustained period of inclement weather.

Factories are advising farmers who have not drafted lambs for slaughter for a prolonged period to take care when drafting and to exercise caution with lighter lambs given the severity of cuts in place.

The appetite displayed for sheep by some factories is reported as sluggish and this ties in with a reluctance to quote longer than one to two days in advance.

The blame for the continued cuts continues to be laid at the door of a tougher trading environment in export markets.

The price in Britain appears to have steadied this week at a range of £5.60/kg to £5.70/kg (€6.51/kg to €6.63/kg). It is hoped that if this is maintained, it will help to introduce some stability to the trade over the coming week.

Prices in Northern Ireland have steadied somewhat this week, with base quotes of £5.20/kg down 5p/kg on the week.

Supplies of good-quality lambs are also reported as being in tight supply and regular sellers and groups are securing 5p/kg to 15p/kg higher for lambs meeting the required specification.