The sheep trade appears to have steadied in recent days. Factories are happy to continue to accept all lambs coming on stream and maximise throughput, but agents do not appear to be as anxious when competing for lambs.

Some agents report an increase in the number of shed-finished lambs coming on to the market and this is compensating for a tightening in lambs coming fit off grass or forage crops.

Kildare Chilling continues to set the pace with an increase of 10c/kg to its base price on Monday being the main change at the start of the week. This leaves the factory well out ahead in terms of quotes offered, with a base of €5.60/kg plus 10c/kg quality assurance (QA) bonus.

Prices this week range on average from €5.60/kg to €5.80/kg. Producers selling small numbers and not trading in Kildare Chilling are securing returns ranging from €5.55/kg to €5.65/kg on average, with sellers handling larger numbers and selling more frequently pushing prices for QA lamb to €5.70/kg to €5.75/kg.

At the higher end of the market, prices paid to producers handling large numbers or selling through groups are typically ranging from €5.75/kg to €5.85/kg, with occasional select deals at a higher price.

There has been some negative reaction in recent weeks from a number of producer groups regarding sheep factories either not quoting or quoting a price which is well below the going rate.

This is curtailing returns for producer groups and, in some cases, witnessing lambs moving at prices below what is available at the higher end of the market and threatening to unsettle group participation.

It has witnessed some groups having to abandon the normal pricing mechanism and negotiate on a weekly basis.

The move by factories to increase prices paid last week and attract out higher numbers paid dividends, with last week’s throughput increasing by 1,992 head to 56,212. This is still a long way off the corresponding week in 2019, where throughput was 10,074 head higher. The shortfall in the kill in recent weeks compared with the corresponding period in 2019 has resulted in the kill falling from a from a position of being over 100,000 head higher to now running 60,259 head higher.

It is a similar case in Northern Ireland, with throughput for last week increasing by 864 head to 10,844. Throughput in NI factories at 421,664 head is running 39,717 above the corresponding period in 2019. The number of sheep exported for direct slaughter in Irish factories, at 358,323 head, is 20,298 lower than in 2019, while the number of sheep exported to Britain for direct slaughter at 10,894 head is 9,342 higher.

This week’s quotes are in the region of £4.70/kg to £4.75/kg or €5.21/kg to €5.27/kg at 90.2p to the euro. Top prices paid are running 5p/kg to 10p/kg higher, with top returns hitting £4.85/kg to £4.90/kg in places.