The sheep trade has steadied on a strong footing over the last week. Factory agents remain anxious for sheep, but are reluctant to increase prices further and are digging their heels in on prices offered.

This is leaving a high percentage of deals completed at the higher end of the market from €5.55/kg to €5.65/kg.

Agents are more cautious and there is more of an appetite to give allowances on carcase weight, with groups and regular sellers now achieving 22.5kg carcase weight without any negotiating, while select deals are rising to 23kg carcase weight.

Sellers handling significant numbers but not trading through producer groups or possessing the same negotiating power as those handling large numbers are typically trading around the €5.50/kg mark, while individual sellers handling small numbers and trading periodically are receiving prices of €5.40/kg to €5.45/kg.

The exception to this is in Kildare Chilling, where the base quote of €5.40/kg plus 10c/kg quality assurance (QA) bonus leaves all producers with QA lamb trading from €5.50/kg upwards.

The steadying in prices and reluctance of agents to increase prices further has slowed throughput. This is reflected in last week’s kill reducing by 4,637 head to 50,716. This is 11,804 head behind the corresponding week in 2019, but it is not a fair comparison given trade disruption from beef factory protests and Brexit concerns.

Last week’s kill also shows the extent to which ewes have tightened, with throughput recorded at 7,089 head. Quotes remain at €2.60/kg, but prices have moved on 5c/kg to 10c/kg in many cases.

Producers with significant numbers of ewes are securing returns ranging from €2.75/kg to €2.85/kg, while there are reports at the top end of the market of sellers handling upwards of 80 to 100 ewes securing returns of €2.90/kg to €3.00/kg.

IFA sheep chair Sean Dennehy said: “Demand is very strong and deals on weights and transport are offered by factories to hold back on further price increases. Quality assured lambs are making €5.65/kg, with group lambs in particular up to €5.70/kg.

“Farmers should continue to move lambs as they become fit and those meeting opposition on price should also consider a vibrant butcher or wholesale trade.”

Northern trade

A vibrant mart trade is helping to keep plenty of life in the trade in Northern Ireland.

Quotes have jumped by 20p/kg on last week to £4.65/kg or €5.21/kg at 89.2p to the euro. This has brought quotes in line with what prices were being paid last week.

Prices have also steadied in recent days, with regular sellers negotiating prices ranging anywhere from £4.65/kg to £4.75/kg and reports of 5p/kg higher in cases.

The increase in price is helping to underpin throughput of 9,741, which was unchanged.

The number of sheep imported south for direct slaughter at 7,664 head was 1,034 sheep higher than the previous week.