There are stronger signs of life returning to the lamb trade after weeks of downward pressure. Despite last week’s strong kill numbers, lamb supply seems to be tightening. Factory agents are realising this and their tune is slowly starting to change, with more positive vibes beginning to emerge.

Individual farmers selling lambs have secured prices of €4.60/kg to €4.70/kg, including bonus payments. Last week’s prices paid to these farmers would hardly deviate above base quotes.

Producer groups are also seeing improvements in the trade, with prices of up to €4.80/kg being paid. Agents are more eager for lambs and it is expected that the trade will continue to improve as the week progresses. Most producer groups have negotiated weight limits now up to 22kg.

Despite the positive signs, all the factories have held steady with their quotes this week, but they may be poised to move upwards again after the downward trajectory of late.

Ballon Meats holds top spot in the price table, with its all-in quote of €4.70/kg. Kildare Chilling has held its quote of €4.60/kg (+10c QA), followed by Kepak with a quote of €4.55/kg (+5c QA). Irish Country Meats and Dawn Meats are both on the lowest quote of €4.50/kg (+10c QA).

The total sheep kill last week was at 65,380 head. Of those, 51,798 head were made up of lambs (down 587 on the same period in 2017). With factory agents becoming eager for lambs now, these numbers are expected to tighten.

IFA national sheep chair Sean Dennehy said now that we are in October, it’s time that the factories increased the carcase weight to 22.5kg. He said that farmers are very annoyed over the way some factories are dumping clipping charges on them under the clean livestock policy. “On top of this, the Department and the factories are sending back way too many consignments. This policy is way too penal on sheep farmers.”

Cull ewes

Cull ewe prices are still disappointing, with the high kill numbers not helping matters. Last week’s kill was 13,457 head, which is up 1,721 on the same period last year. The cumulative difference between 2018 and 2017 is 55,442 head. Quotes range from €2.40/kg to €2.60/kg and prices paid are not straying far from quotes.

NI

The number of northern lambs sent for direct slaughter to the south was 8,849 head last week. This is slightly back on previous weeks, but overall numbers imported south for slaughter are up 10% in 2018. Dunbia remains on a quote of £3.75/kg, (equivalent of €4.20/kg at 89.4p to the euro and €4.42/kg inclusive of VAT at 5.4%). Linden Food’s quote is 5p/kg lower.

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Sheepwatch: steady trade for lambs

Northern view: cattle price steady as supplies build