The sheep trade has steadied on a solid footing over the last week. The main movement occurred at the start of the week when Kildare Chilling increased its base quote to €5.40/kg plus its 10c/kg quality assurance bonus.

All other quotes remain unchanged, while a number of farmers are voicing disappointment at Kepak for failing to quote for lambs again this week.

A high percentage of lambs are trading in the region of €5.40/kg to €5.50/kg.

Producer groups and some regular sellers trading at the higher end of the market are securing returns in excess of €5.50/kg by means of bonus payments or having transport costs covered.

At the lower end of the market, there are some deals being completed at a price range of €5.30/kg to €5.35/kg for non-QA lamb.

Factory appetite remains strong, with plants happy to operate at a relatively high level of throughput.

This is reflected in last week’s kill being recorded at 61,840 head. This includes ewe and ram throughput of 10,007 head, which is the highest level for some time.

The higher kill comes on the back of factories prioritising on lamb throughput and building up a supply of ewes, while some farmers are now moving ewes after getting hoggets on hand to replace them for the purposes of the Sheep Welfare Scheme.

Throughput for the year to date is running some 99,797 head above 2019 levels.

This includes 84,629 extra spring lambs and 36,937 hoggets, while the ewe and ram kill has been running at a lower level for much of the year, with 21,459 fewer head processed.

Reports indicate that while the kill is up almost 100,000 head, the volume of sheepmeat produced has not increased on a pro-rata basis due to lambs being drafted at lighter carcase weights and fewer ewes killed.

Ewe quotes are steady at a range of €2.50/kg to €2.60/kg, with top prices reported as paid to farmers with significant numbers on hand ranging from €2.70/kg to €2.75/kg.

Agents handling higher numbers have greater negotiating power, with mart managers reporting a stronger trade in sales over the last week.

It is worth weighing up which outlet is the better alternative, particularly for heavy carcase ewes.

Factory procurement agents are asking farmers to be mindful of a change in ground conditions and more frequent rainfall and to take appropriate steps to prevent lamb presentation issues.

Northern trade

Northern factories have reversed last week’s 5p/kg cut to base quotes, with plants offering £4.45/kg to £4.50/kg.

This is the equivalent of €4.96/kg to €5.02/kg at an exchange rate of 89.7p to the euro.

Regular sellers and producer groups are securing an extra 5p/kg to 10p/kg.

Last week’s sheep kill reduced by 1,405 head to 10,880. There are no official figures released yet for imports south for direct slaughter, but estimates show numbers increasing to in excess of 10,000 head, which is likely to be contributing to the lower throughput levels.

The average British lamb price for last week was reported at £4.57/kg (€5.10/kg), an increase of 13p/kg on the previous week.

Prices reported by the AHDB show in-spec R grading lambs ranging from £4.55/kg to £4.65/kg (€5.08/kg to €5.18/kg), with U grading lambs rising up to 10p/kg higher.

Meanwhile, the SQQ price has been 2p/kg to 3p/kg easier at £2.14/kg.