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The sheep trade is on a solid footing this week, with the main processing plants leaving base quotes unchanged.
This keeps the two ICM plants on €4.80/kg, before the addition of its 10c/kg quality assurance (QA) premium. Both plants continue to work from a base quote of €2.60/kg for ewes.
Dawn Ballyhaunis remains on a base of €5/kg for lambs before factoring in its 10c/kg QA premium.
However, with adequate numbers on hand, it is not quoting on cull ewes.
Ballon Meats is also on €5/kg for lambs and a base of €2.60/kg for ewes.
There were initial fears that the closure of Kildare Chilling would undermine the market, as the loss of a key export plant should have helped competing plants secure numbers with ease and possibly move to pull prices.
However, such concerns have not materialised. If anything, there are positives to be found in the trade this week.
While base prices are unchanged, there are signs that there is more life entering the trade.
No loss in capacity
There appears to be no loss in killing capacity, with other processors picking up the slack and processing additional sheep to fulfil order books.
Farmers offloading lambs report factory agents are keen to secure numbers. Where bigger numbers are on offer, agents appear to be more flexible when negotiating on price.
Demand appears to be growing as this week has progressed, with farmers saying agents have been extremely active in sourcing additional numbers for Thursday.
Price deals saw some upward momentum midweek, putting factory prices on €5.10 to €5.20/kg, with some indications that €5.30/kg has been paid at the top end of the market.
The supply of factory-fit lambs coming on to the market is showing signs of slowing, after unseasonably high throughput during June and July has taken a lot of sheep out of the system.
With ground conditions also improving, farmers are coming under less pressure to move lambs to free up grazing ground.
IFA sheep chair Sean Dennehy called on farmers to carefully assess the options available before selling lambs this week.
In the aftermath of the Eid Al-Adha festival, the sheep kill recorded a significant drop of over 30,000 head to 44,232 last week
“The temporary closure of Kildare Chilling means there is one less outlet, but numbers are tight due to farmers moving large amounts of stock and selecting lighter weights during the recent Eid festival. Farmers should hold on to light lambs and look for alternatives if they have heavier lambs to move,” he said.
In the aftermath of the Eid Al-Adha festival, the sheep kill recorded a significant drop of over 30,000 head to 44,232 last week, of which, lambs accounted for 36,889 head while ewe throughput stood at 7,239.
Imports of sheep from Northern Ireland for processing at Irish plants fell by just over 2,000 head to 6,529.
Northern Ireland
There are also signs that lamb prices are hardening in Northern Ireland, as factories look to keep pace with a more vibrant live trade as agents for Irish plants are becoming more competitive as numbers start to tighten.
Plants have managed to slip quotes by 5p/kg to a base of 440p/kg (€5.15/kg inc VAT) midweek.
But some farmers report that 445p to 450p/kg (€5.21 to €5.27p/kg) is being offered to producer groups and regular finishers.
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