There is no real change in the sheep trade in recent days. Factories continue to display caution in their purchasing activity but are keen for sheep. The day’s less processing capacity is reducing throughput but it is unlikely that this week’s throughput will have dropped a full day’s kill with some plants utilising extra capacity on the four days it is processing to compensate.

Quotes for Thursday remain unchanged with a wide differential remaining between the top and bottom quotes as detailed in the price table on right.

Producers selling individually are typically receiving prices of €5.10/kg to €5.20/kg for quality assured lamb with prices varying depending on what part of the country you are trading in, with Kildare Chilling remaining top with a €5.20/kg quote for quality assured lamb.

Those with greater negotiating power are pushing returns to €5.25/kg while sellers handling higher numbers and trading at the top end of the market along with producer groups are securing returns of €5.30/kg and in occasional cases 5c/kg higher when conformation bonuses or allowances on transport are factored into the equation.

Factories remain cautious in their purchasing behaviour and some are now more willing to do deals to 22kg carcase weight rather than negotiate at the higher price level. Some are voicing continued concerns over an escalation of coronavirus cases across EU export markets and are hoping that the experience of trading through a lockdown earlier in the year will help to minimise any potential trade disruption.

Producers should be aware that while factories may be more cautious in their purchasing behaviour they are still keen to operate at a high level of throughput. There are also continued signs of the number of well-fleshed lambs tightening and this is also helping to keep a floor under the trade. This is especially evident in mart sales where numbers have tightened significantly.

Northern trade

Quotes in Northern Ireland are unchanged at a base of £4.40/kg or the equivalent of €4.87/kg at 90.4p to the euro. Regular sellers and groups are securing 5p/kg to 10p/kg higher with a strong live trade in the marts also helping to keep a strong floor under the trade.

Buyers purchasing on behalf of southern plants remain active in sales with the number of sheep crossing the border for direct slaughter in southern plants unchanged last week at 8,282 head. This is 1,500 behind the corresponding week in 2019. Year-to-date imports of sheep for direct slaughter are 304,152 head, 6,142 head lower than 2019 levels.

The British trade is solid. The latest AHDB report shows the standard quality quotation (SQQ) deadweight lamb price for the week ending 24 October averaging £4.41/kg (€4.88/kg). There has been some upward movement in the live weight SQQ this week with prices rising 5p/kg to 8p/kg and climbing back over £2.00/kg liveweight.