Sheep Trends: lamb quotes up 20c/kg to 30c/kg

Base quotes for lambs have lifted by 20c/kg to 30c/kg on last week, leaving opening prices for quality assured (QA) lambs ranging anywhere from €8.20/kg to €8.50/kg.

The main movers are the two Irish Country Meats plants in Camolin and Navan which have raised base quotes by 30c/kg to €8.30/kg plus 20c/kg QA.

The movement in price lifts group returns for R grading lambs to in the region of €8.60/kg.

Reports indicate that sellers trading at the top end of the market are now securing returns of upwards of €8.80/kg for large consignments of lambs.

All plants now seem to have followed ICM’s movement on carcase weight and are paying to 23.5kg carcase weight. Some deals are being negotiated at 24kg, again for large consignments.

Factories are keen to try to maintain the slow upward momentum in throughput.

Last week’s sheep kill was recorded by the Department of Agriculture at 41,265 head. This represents an increase of 4,038 head on the previous week, but a look at 2023 statistics shows the continued tightness in supplies, as the kill is 20,135 head below the corresponding week in 2023.

Throughput for the year to date is running at 2.375m head and is now over 335,000 head lower.

If this trend continues, it will be the lowest level of throughput for over a decade (see page 37 for more). The ewe kill of 3,029 last week is running 50% below the norm.

Agents would normally be concentrating on lambs at this stage of the year, but given the tightness in supplies have increased activity for ewes.

The two ICM plants have increased ewe quotes by 30c/kg to €4.30/kg and carcase weights to 45kg.

At the top end of the market, plants and smaller abattoirs such as Ballon Meats are quoting €4.80/kg for select choice ewes.

Northern Ireland

There is variation in base quotes in Northern Ireland. Dunbia Dungannon is holding its base quote at £6.60/kg (€8/kg), while Linden Foods has increased its base quote for Thursday to £6.75/kg (€8.19/kg).

Sterling has maintained its recent strengthening to the euro and stood on Wednesday afternoon at 82.5p to the euro.

Regular sellers and producers trading at the higher end of the market continue to secure 10p/kg to 15p/kg above base quotes.

Plants are reluctant to sanction deals of £7/kg (€8.49/kg), but have paid £6.90/kg to £6.95/kg (€8.37/kg to €8.43/kg) for large consignments of lambs.

All plants moved to 23kg carcase weight since last week.

Prices in Britain are also edging upwards, with the AHDB reporting last week’s average price at £6.90/kg, with reports indicating top prices have moved above £7/kg this week.

French prices remain above €10.30/kg and Spanish above €9.50/kg, according to the Bord Bia sheep price dashboard.