Sheep producers trading lambs this week are facing a much bleaker trading environment, with base quotes for Thursday falling by another 30c/kg to 50c/kg week on week.

The most severe price fall has been in Kildare Chilling, with its base quote of €6.40/kg, plus its 10c/kg quality assurance bonus, down 50c/kg on the week.

About 20c/kg of this reduction occurred at the start of the week, followed by a 30c/kg cut midweek.

Other plants have reduced quotes to a base price of €6.50/kg, with this also occurring in two phases of 10c/kg at the start of the week followed by a second cut of 20c/kg.

This leaves the general run of prices for lambs traded by farmers with lower negotiating power from €6.50/kg to €6.60/kg, with groups and producers trading at the higher end of the market securing returns at the higher end of the market at €6.75/kg to €6.85/kg.

Numbers of fleshed lambs in the system are reported as being tight, but with falling prices enticing higher numbers of lighter lambs forward, last week’s kill increased by 2,458 head to 56,535.

Factory agents are cautioning producers as to poor slaughter performance, with kill-out and fat cover the main issues.

The fact that lambs are being killed at lighter carcase weights is reducing volumes processed.

The kill profile included 48,128 lambs, 7,957 ewes / rams and 433 hoggets.

Hogget quotes

Hogget quotes are in the region of €5/kg and producers need to be mindful of hoggets presented which have set teeth, with these sheep being discounted in price.

Ewe quotes have eased in places by 10c/kg to €3.50/kg. Typical prices are in the region of €3.50/kg to €3.60/kg, with top prices still reported at €3.70/kg to €3.80/kg.

Prices have reduced in mart sales, but there are still premium prices being paid in some marts for heavy fleshed ewes.

As such, continue to weigh up the best outlet for ewes which will kill in excess of 45kg carcase weight.

Northern trade

Plants in Northern Ireland have reduced quotes by 20p/kg on the week and are quoting a base of £5.30/kg for Thursday. This is the equivalent of €6.30/kg at 84.1p to the euro.

Regular sellers and those trading at the top end of the market have secured prices as high as £5.50/kg (€6.54/kg) for Thursday, with factories now moving quickly to try to pull prices back.

The number of lambs exported from Northern Ireland for direct slaughter in southern plants was recorded at 7,896 head.

This is 5,000 up on the week, with the higher number stemming from an overhang in the system last week.

Prices in Britain have also faced a sharp downward trajectory.

Quotes have fallen by upwards of 40p/kg to 50p/kg in places and are heading closer to £5.50/kg than £6.00/kg.