Factory agents have significantly stepped up their purchasing activity over the last week. The higher demand for lambs in recent weeks is being driven by more customers switching over from hogget to spring lamb, hogget throughput falling to a very low level and rising demand ahead of the Ramadan festival, which commences on 7 June.

While factories have played down a sharp rise in demand on the back of the Ramadan festival, there is no doubt that it has put more life into a market where supplies are already tight.

This is most evident in factory agent activity in marts where lambs have increased in price by €4 to €6/head.

When trading and transport costs are factored into the equation, these agents would need a much higher price than €5.50/kg to €5.60/kg offered in general deals.

A number of plants have increased base quotes for producer groups to €5.40/kg and have been actively ringing to source more lambs. When bonus premiums are included, lambs are trading from €5.65 to €5.75/kg.

A similar price of €5.60/kg to €5.75/kg has also been reported as being paid to producers handling larger numbers. Weight limits also remain variable, with some plants trying to restrict to 20.5kg where paying the higher price and moving to 21kg to secure deals.

Ewe trade

Throughput of ewes is low, with very few finished ewes appearing in marts. Quotes remain low at €2.40/kg to €2.50/kg, with plants competing at significantly variable levels of interest. This is reflected in prices paid, with the average price reported at €2.55/kg to €2.60kg, rising to €2.70/kg in plants specialising in the ewe market.

Northern trade

The northern trade is steading after the recent price reduction of 20p/kg to 30p/kg. Plants are quoting £3.85/kg to £3.90/kg (€5.32/kg to €5.39/kg) for lambs, with reports suggesting sellers handling higher numbers are capable of securing 5p/kg to 10p/kg higher.

The reduction in the trade has given buyers purchasing for southern plants a competitive advantage with more activity reported in mart sales.

French trade

There has been no real change reported in the French market over the last week.

Irish lambs are reported as trading at €5.60/kg excluding VAT and are competing with an increase in Lacaune lamb (French lambs from milking flocks) also reported in the Rungis market and trading for €5.00/kg to €5.10/kg excluding VAT.

Demand is forecast to gradually build with numerous in-store promotions starting.