Factory quotes for Thursday range from being steady at last week’s level to easing 15c/kg.

The two ICM plants continue to report a base of €4.50/kg, while Kildare Chilling’s quote of €4.60/kg has eased 10c/kg on last week’s level.

Kepak Athleague is back to normal processing and is quoting a base of €4.40/kg, with a 5c/kg higher quality assurance (QA) quote of 15c/kg.

Dawn Ballyhaunis is not quoting, while Ballon Meats has reduced its all-in quote by 15c/kg to €4.50/kg. Meanwhile, Moyvalley Meats has reduced by 10c/kg to €4.60/kg.

Prices paid to individual sellers for QA lambs range on average from €4.60/kg to €4.70/kg, with prices for an individual seller strongest in Kildare Chilling. Producer groups and producers negotiating at the top of the market are pushing top returns to €4.75/kg to €4.80/kg when bonuses are taken into account.

Last week’s sheep kill was recorded at 66,940 head, an increase of 16,405 on the previous protest-disrupted week.

Lamb throughput was recorded at 56,394 head, while the ewe and ram kill of 10,566 was among the highest in 2019.

Reports suggest this week’s throughput is getting back to normal levels, with some factories keen to source supplies.

The latest price cuts are denting farmer confidence, with many setting €100 as the lowest price required to cover costs and have any hope of generating a positive margin.

Factories report export markets conditions becoming increasingly challenging, with higher volumes of UK lamb on the market and sellers willing to trade at lower prices to move volumes.

Sheep farmers are becoming increasingly exposed to trade distortion caused by Brexit and should be included in any compensation fund.

The trade in Northern Ireland is steady, with quotes unchanged at £3.70/kg to £3.75/kg. Sterling continues to fluctuate greatly and at Wednesday’s stronger sterling exchange rate of 91.5p to the euro, this equates to €4.04/kg to €4.10/kg and €4.26/kg to €4.32/kg including VAT. Top prices are 5p/kg to 10p/kg higher.

Last week’s northern sheep kill was 742 head lower at 934, while exports south for direct slaughter were unchanged at 11,039.

The latest AHDB market report shows the rate at which UK farmers are pushing out sheep faster.

It should be noted that drought limited throughput in July 2018, but this still does not account for the scale of the increase.

Lamb throughput at 1.09m head increased 5.7% year on year in July, while ewe and ram throughput was 12.6% higher at 147,900. Carcase weights are also higher, culminating in an increase in production of 9.9%, with July production recorded at 25,200t.

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