After a very disappointing period for spring lamb producers, there are signs of stability and possible recovery in the spring lamb trade.

While the damage is done for producers who traded lambs in a high-cost system, there are signs of lamb prices turning a corner on the back of tighter supplies. Reports yesterday pointed to some plants having to change tactics, with agents ringing sellers and producer groups looking for extra lambs.

Plants have maintained their quotes at €5.20/kg, but reports show €5.30/kg to €5.40/kg being paid yesterday, with higher quotes in the midlands, to secure deals.

The trade remains strongest here, with plants in the west slower to push prices upwards. Farmers were left angered at attempts by one factory in the west to try to purchase lambs at €5.10/kg over the weekend, with prices recovering to €5.30/kg as the week progressed.

Most sellers are also securing payment to 21kg carcase weight, but exceeding beyond this range is proving very hard to achieve. Looking at supplies in the immediate weeks ahead, reports suggest normal throughput could be more limited, with difficult weather limiting lamb performance. The market is also likely to be boosted by the Ramadan festival, which starts on 18 June.

NI trade: Quotes remain unchanged in the north at £3.50/kg or the equivalent of €5.05/kg including VAT.

The strength of sterling against the euro is reported to be continuing to hamper Northern plants’ export trade to continental markets.

The sheep and lamb kill has increased again to just under 8,000 head.

A tightening of supplies in Britain, following a switch by more retailers to spring lamb, should also help generate more demand. The number of sheep exported south for direct slaughter in the last week was low at 2,307 head.

French trade: Bord Bia reports grade one Irish spring lamb trading at €5.40 to €5.50/kg this week, while grade two lamb is trading at €5.20 to €5.30/kg.

An oversupply of lamb on the market, added to strong availability of lamb from export markets and high volumes of French Lacuane lamb, continues to be an issue, although Bord Bia market analysis points to signs of greater demand, with a number of retail promotions in stores this week.

More competition: IFA Sheep Committee chairman John Lynskey said the lamb trade has strengthened this week on the back of tighter supplies and strong factory demand. He said as the week has progressed, more farmers are negotiating €5.40kg to 21kg, with factories actively seeking lamb.

Lynskey added that the live trade is also underpinning the trade, with exporter activity increasing in the lead-up to Ramadan, which is providing much-needed competition to factories.