The lamb trade is showing more signs of stability after significant negative pressure applied to prices over the past fortnight.

Prices in general are well ahead of the same period last year, up 50c to 60c on average. Most lamb producers are securing prices of €5.45/kg to €5.50/kg for lambs to a weight limit of 21kg.

Earlier in the week, some factory agents pulled base quotes back to €5.20/kg but as the week progressed have had to reverse their decision because supplies are not as good as expected.

Farmers with lambs to sell have used the reduced supplies to their advantage and negotiated prices well above official quotes.

Kepak is leading the factory quotes with its price of €5.35/kg excluding bonuses. This is followed by Kildare Chilling’s quote of €5.30/kg.

Interestingly, Dawn Meats has officially quoted €5.30/kg for lambs after a number of week’s absence from our table.

Irish Country Meats is at the bottom of the table again with its quote of €5.20/kg, with some lamb producers expressing frustration with the continued lower quotes.

Numbers, as expected, increased last week, with a total of 49,408 lambs slaughtered and the total sheep kill hitting 58,511 (up 4% on the same period in 2016). However, more recently, factory agents are commenting that numbers are tighter than they would like. One farmer from a large producer group said the number of lambs sent for slaughter in their group was significantly down on the two previous weeks.

With weaning taking place currently, drafting may be put on hold on some farms. Reports suggest slaughter weights and flesh cover are significantly lower this year which does have a significant effect on meat yield and sales. IFA national sheep committee chair John Lynskey said supply and demand is finely balanced but prices are starting to strengthen.

Cull ewes

Cull ewe prices are very strong, with prices of €2.85/kg to €2.90/kg common. Some farmers have secured €3.00/kg for ewes but weight limits are usually curtailed to 40kg in this scenario. There is a limited supply of hoggets still on the market. Kildare Chilling is quoting a base of €4.00/kg for these sheep.

NI

Lamb quotes in the north have fallen 10p to 15p/kg this week. Quotes are sitting at £4.30/kg (equivalent of €5.13/kg including VAT) in plants. Some producer groups are securing £4.35/kg (€5.19/kg). The number of lambs sent south for direct slaughter from the north was 5,985 head, which is down 4% on the same period last year.