Sheep Trends: narrower gap between quotes and prices

There has been a slight easing in lamb prices at the top end of the market over the last week, with prices back by 5c/kg to 10c/kg.

Base quotes remain unchanged in the main, but the wider differential between quotes and top prices which emerged in recent weeks has narrowed somewhat.

The two Irish Country Meats plants in Camolin and Navan continue to quote a base of €7/kg plus their 20c/kg quality assurance (QA) bonus, while Ballon Meats is offering an opening all-in quote of €7.20/kg.

Reports indicate quotes for QA lambs in plants not offering an official quote continue to vary from €7.20/kg to €7.40/kg.

Regular sellers handling large numbers and possessing a strong trading relationship with factories are said to be finding it more challenging to negotiate above €7.50/kg.

This is reflected in the purchasing activity of agents in marts, with buyers more coy in the price they are willing to pay.

Meanwhile, groups and regular sellers are typically trading from €7.30/kg to €7.40/kg, with some higher prices paid when conformation bonuses are included.

Factory agents have been helped in their attempts to take the bite out of a vibrant mart trade by an increase in numbers coming on stream.

Last week’s kill figure was recorded at 54,915 head. This represents an increase of upwards of 5,000 on the average throughput figures in recent weeks and is on par with the corresponding week in 2023.

The ewe and ram kill has increased by a couple of thousand head during this period and at 7,210 for last week, remains about 1,000 lower than the same week in 2023.

The increase in ewe throughput is putting some pressure on the trade for lower-quality and light-carcase ewes less than 35kg in some plants.

The majority of plants continue to quote €4/kg for heavier ewes, with Ballon Meats remaining well out in front at €4.40/kg. Where quotes are split on carcase weight, they range from €3.40/kg to €3.60/kg for lighter fleshed ewes.

Northern Ireland

Plants in NI are also moving to try to edge prices back. Base quotes for Thursday have been pulled by 5p/kg to 10p/kg, with base quotes ranging from £6.05/kg to £6.10/kg. This equates from €7.09/kg to €7.15/kg at an exchange rate of 85.2p to the euro.

Reports indicate factories are not getting it all their own way and are struggling to pull prices.

Buyers from Britain have been absent in marts in recent days, but reports pointed to these buyers recommencing activity on Wednesday.

The number of sheep exported south for direct slaughter last week increased by over 550 head to 6,325.

The latest price report from the Agriculture and Horticulture Development Board shows average prices for last week reducing by 2.5p but still remaining positive at £6.65/kg (€7.80/kg).