At the start of the week, lamb prices were varied across the country and were largely dependent on location and the number of lambs being traded.

In some parts, producers were securing up to €4.70/kg and higher for lambs, while in other locations where factory base quotes were low, farmers were being paid the lower end of prices ranging from €4.55/kg to €4.65/kg.

However, tightening supplies have meant base quotes in some plants have risen 10c/kg this week, with Kildare Chilling moving back up to a base quote of €4.50/kg and Ballon Meats moving back up to €4.60/kg.

Another low kill of 58,337 sheep (down 14,000 compared to the same week last year) is helping to encourage factories to lift base quotes and compete for lamb supplies, with many farmers now securing €4.70/kg to €4.75/kg at the higher end of the market.

The tightening supplies are very evident in the marts, with managers reporting a strong trade for factory-fit lambs this week and a surge in factory agent activity competing to secure the fewer finished lambs available (see SheepWatch below).

IFA National Sheep Committee chairman John Lynskey said there was more bite in the trade as the week progressed, with factories increasing the price by 10c/kg and paying up to €4.80/kg.

Northern Ireland

Last week, 8,636 lambs were imported for direct slaughter from Northern Ireland. This is slightly down on the previous week, but the reduction in numbers was expected due to the end of the Muslim Eid Al-Adha festival.

Northern Ireland lamb imports still make up 15% of the weekly kill and are an important source for southern factories.

Total imports of northern lambs to the south is standing at 238,933 for the year to date, which is down 33,838 (12%) compared with the same period last year.

The lower numbers imported may be put down to a very strong sterling throughout 2015, which made northern lamb imports less competitive in the south. Today €1 will buy £0.74, compared with £0.79 this time last year.

Another aspect was extra regulations associated with slaughtering northern lamb in the south earlier in the year.

However, factories have now found a way to accommodate the extra regulations and make them part of their normal processing activity. Lamb prices in the north are up 5p/kg, with both plants now quoting £3.15/kg (€4.47/kg including VAT).

Cull ewes

The cull ewe price is ranging from €2.50/kg to a top price of €2.70/kg in Ballon Meats. Managers reported variable demand for fleshed ewes this week. However, quotes are steady, with Kildare Chilling increasing its quote by 10c/kg.