Prices continue to move in the right direction for lambs, as factory agents are forced to work harder to secure numbers.

The majority of farmers are securing €5.15/kg to €5.20/kg including bonus payments. These prices paid are up 5c/kg to 10c/kg on last week and highlight the demand that is currently out there for lambs.

All the factories made a move on quotes this week, upping base quotes by 5c/kg to 10c/kg.

Kildare Chilling is leading the quote table with its base quote of €5.00/kg (plus 10c quality assurance (QA)).

This is followed by Kepak with its quote of €4.95/kg (plus 5c QA). Both Ballon Meats and Moyvalley are on an all-in quote of €5.00/kg and Irish Country Meats is at €4.90/kg (plus 10c QA).

The total number of sheep killed in the first week of 2019 stood at 47,839 head.

This is down 3,693 head on the same period in 2018 and helps explain the increase in demand currently.

There are also reports that the lamb trade in France is hardening and French importers are keen for numbers, which is boosting domestic prices.

There is no denying that the trade for lambs is strong now and there is good reason to believe this trend will continue in the short term at least.

Last spring, supplies of hoggets were tight, which resulted in prices exceeding €6.00/kg and spring lamb prices topped €7.00/kg for a prolonged period.

This year, it is estimated that supplies of hoggets will be even tighter, which should help to sustain demand.

It is also likely that there will be less ewes due to lamb early this spring, which will affect supplies of spring lamb in April.

Brexit may also have an impact, but whether this will be positive or negative for the Irish lamb trade remains to be seen.

NI prices

In the north, prices for lambs have taken a leap of 10p/kg. Farmers are now securing £4.25/kg (equivalent of €4.97/kg including VAT at 5.4%).

The latest figures we have on the number of lambs travelling from the north for direct slaughter in the south during Christmas week was 2,770 head. This figure has likely doubled over the last week as operations came back on track.

Prices in the UK have increased considerably during the week, up the equivalent of 26c/kg to an average price of £4.31/kg or the equivalent of €5.04/kg (including VAT).

Cull ewes

Quotes for cull ewes are on the up this week, following the same trend as lambs. Most agents increased quotes by 10c/kg. Ballon Meats is on an all-in quote of €2.80/kg, with the others on €2.70/kg. Prices paid remain in excess of €2.80/kg, with some securing €2.90/kg and €3.00/kg for good-quality fleshed ewes.

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