This is a subscriber-only article
The store lamb trade continues to be very strong with prices running £10 to £12 higher than the same period last year.
Suffolk and Texel sired lambs weighing 38kg to 40kg are making prices ranging from £80 to £88.
Last year, the same lambs were selling for around £70 to £75 depending on quality and buying competition.
Mule lambs at similar weights as are currently making £75 to £80, which is also well up on previous years.
In some cases, pens of mule ewe lambs are being purchased with the intention of holding animals for breeding.
Lighter lambs weighing 35kg to 38kg are selling around £74 to £78 for lowland types, while animals with hill breeding are making £5 to £15 less depending on condition, weight and quality.
Grass supplies
Mart managers point to a number of factors creating demand. Firstly, farmers are looking to utilise strong grass covers, especially where ground conditions are harder to manage.
In addition, cattle prices are exceptionally high and more farmers see investing in store lambs as lower risk, with a much quicker return on capital.
Finally, finished lamb prices have been strong all summer and with higher numbers processed this year, there is optimism that lambs will be in good demand this back end.
Budget
Before buying lambs, a few simple sums should be done.
For example, lambs purchased at 38kg with a target sale weight of 48kg – at a daily gain on grass of 150g/day it is a finishing period of 66 days, or 10 weeks.
Taking a purchase price of £82/head, grazing costs of £5, with £5 for dosing and miscellaneous costs, the break-even cost is £92.
On a 21kg carcase, this is a factory price of 438p/kg, which rises to 460p/kg to allow for a £5/head profit margin.
SHARING OPTIONS: