The sheep trade has stabilised following a number of weeks of intense price pressure. Base quotes are unchanged and range in the main from €6.30/kg to €6.40/kg. Plants not officially quoting are reported as working off a base price of €6.35/kg.

Regular sellers and those handling significant numbers are reported as having a bit more negotiating power.

Prices paid to these sellers and those trading through groups range from €6.50/kg to €6.60/kg, with some lambs trading for as high as €6.65/kg to €6.70/kg when conformation bonuses or allowances on transport costs are factored into the price.

The stability in the trade is stemming from a combination of an improvement in market performance in key export markets, an increase in British lamb prices and a tightening in supplies.

Looking at the latter point first, Department of Agriculture figures show last week’s sheep kill fell by 6,543 head and was recorded at 50,514. This includes 5,638 fewer lambs and 888 fewer ewes and lambs.

Reports indicate that lamb performance has slowed significantly, with fewer farmers supplementing lambs with concentrates. Some farmers are also holding lambs to heavier weights to account for a lower kill-out and be in a better position to optimise returns.

British trade

The fact that British prices have stabilised and rebounded following the sharp fall of almost 50p/kg (60c/kg at 84.6p to the euro) is also improving the competitiveness of Irish exports in key markets.

The average standard quality quotation (SQQ) price for lambs firmed by approximately 25p/kg at the end of last week and has been reported since by the Agriculture and Horticulture Development Board (AHDB) in the region of £2.50/kg to £2.55/kg (€2.96/kg to €3.01/kg).

Deadweight prices are also reported midweek as ranging from £5.40/kg to £5.50/kg (€6.32/kg to €6.50/kg), an increase of 20p/kg to 25p/kg on last week.

The trade in Northern Ireland plants has also stabilised and is showing signs of more life. Opening prices are in the region of £5.00/kg to £5.10/kg (€5.91/kg to €6.02/kg), with regular sellers securing an additional 5p/kg to 10p/kg.

The number of sheep exported south last week for direct slaughter in southern plants fell by 1,320 head and was recorded at 5,419. Reports indicate that lamb numbers have also tightened significant in the Northern market.

Ewe trade

The reduction in sheep throughput and recovery in market performance is also inserting more life into the ewe trade.

Factory quotes have increased by 10c/kg in some plants and range from €3.40/kg upwards, with Ballon Meats remaining top of the quotes table.

Prices paid range from €3.40/kg to €3.50/kg at the lower end of the market, with regular sellers and agents handling big numbers trading from €3.60/kg to €3.70/kg.