The market has been exceptionally strong in recent weeks and continues to improve by the day.

Most farmers are securing €5.25/kg to €5.30/kg for lambs. But there is quite a disparity developing between prices paid to farmers with small numbers to sell compared with prices paid to large finishers and producer groups.

These finishers and groups are negotiating prices over €5.30/kg, with prices of €5.40/kg becoming more frequent. Some farmers with small numbers of fleshed lambs should do a ring-around of factory agents to ensure they are not being short-changed.

These farmers might also consider selling lambs through the mart, where competition between factory agents and butchers has been intense lately. Weight limit increases are up for grabs in negotiations, with a paid carcase limit of 23.5kg available.

The number of lambs being slaughtered on a weekly basis remains tight, which is contributing positively to the market.

Factory quotes continue to climb, highlighting the demand that is out there. Kildare Chilling is top of the pile with its quote of €5.20/kg (+10c quality assurance (QA)).

Interestingly, Kepak is making a statement with its increase in QA payments. It is offering 15c/kg on top of base price for QA lambs. Up to now, it paid just 5c/kg for bonus payments.

The increased bonus shows it is eager for QA lambs. On the other hand, Kepak’s base price is €5.05/kg, a considerable 15c/kg behind Kildare Chilling. Irish Country Meats is on a base quote of €5.10/kg (+10c QA). The all-in quote is in line with Kepak.

With the return of rain, the reports of lamb rejections in factories has been on the increase. The problems associated with the clean livestock policy have not gone away and farmers need to up their guard, especially during times of prolonged rainfall which increases the risk of fleeces becoming dirty and contaminated.

IFA national sheep chair Sean Dennehy said the IFA has proposed that the QA bonus on lambs should increase to 30c/kg.

NI

A total of 11,066 lambs were imported from the North for direct slaughter in southern plants. This is an increase of over 2,000 head compared with the corresponding period in 2018 and shows just how important northern lambs are for throughput in southern plants.

Prices are hardening significantly in the North, with the help of a strengthening sterling exchange rate. Prices of £4.30/kg to £4.45/kg (equivalent of €5.20/kg to €5.39/kg including VAT at 5.4%) are available.

Cull ewes

Cull ewes prices are holding steady in the factories. Farmers are securing €2.80/kg to €3/kg in the main for ewes. In the marts, heavy fleshed ewes are making from €115/head to €130/head.

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