This is a subscriber-only article
The lamb trade has strengthened this week as processors increase base quotes by 20p to 40p/kg with a top quote of 510p/kg on offer yesterday (Wednesday).
The upward price move increases the value of a 21kg lamb carcase by just over £8/head.
Just two weeks ago, meat processors cut lamb prices by as much as 80p/kg, bringing base prices to as low as 460p/kg.
At the time, factory agents pointed to the increasing availability of supply, along with competition in export markets. However, since then, finished lambs have been reasonably slow to come forward, with numbers tighter than expected across the island and especially in Britain.
It has meant prices have quickly stabilised as improved competition in the live trade from buying agents working for southern Irish plants forced local factories to increase base quotes last week.
The live trade continues to provide robust price competition for slaughter-fit lambs with sales held earlier this week returning prices of £110 to £126 for good-quality lambs weighing 21kg to 24kg half-weight.
Lamb processors south of the border have also increased their prices by 10c/kg, with up to 610c/kg being paid earlier this week, which converts to a sterling price of approximately 510p/kg.
Losses
One of the main factors in the tighter numbers at present goes back to the cold and wet weather at lambing. Data from the National Fallen Stock Company (NFSCo) indicate that sheep losses this spring were the worst since 2013.
The not-for-profit company, which is responsible for the collection and disposal of fallen stock across the UK, points out that it is impossible to provide an accurate figure for losses as some animals are collected on a headage basis, while others are collected by weight.
However, in 2018, adult sheep mortality across the UK hit a five-year peak, and was 10% higher than the annual average, at 150,000 head. Losses of lambs were 30% up on the UK average at 250,000 head, and excluding animals recorded on a volume basis.
SHARING OPTIONS: