Sheep trade: Lamb prices topping €6.80/kg as last week's kill falls sharply

The sheep trade this week has strengthened considerably with prices rising by as much as 30c/kg from the start of last week.

This follows the trend seen in recent weeks, where lamb prices have been gradually rising generally by 10c/kg week-on-week the last number of weeks and have even increased from the start of this week.

However, this week, the trade has notched up a couple of gears compared to previous weeks.

Factories have been slow and, in cases, been allergic to answering the phone this week, with many processors not giving a quote for lambs or ewes.

The only factory to give a quote for lambs tomorrow was Kildare Chilling who have upped their base price from the start of this week to stand at €6.60/kg plus a 10c/kg quality assurance (QA) bonus.

Irish Country Meats, Dawn Meats Ballyhaunis and Kepak Athleague didn’t offer a quote for tomorrow for lambs or ewes which for Kepak Athleague isn’t a surprise but in the case of ICM it is.

The sheep kill figures in recent weeks have been gradually falling and with numbers on the ground tight and demand strong, factories have been forced into upping their game this week – much to their dislike.

To say supplies are tight is a bit of an understatement going by last week’s kill figures which show a huge decline of just over 11,500 head from the week before, with the lamb kill falling by just over 10,800 head from the previous week – again highlighting how tight supplies of finished lambs are.

Reports indicate lamb prices topping €6.80/kg currently, with €6.60/kg to €6.80/kg the general run of prices at the top end of the market with more deals being done to weights of 22.5kg.

Farmers are in a very good position, so sell hard and with a very strong live trade currently, there is always the alternative option of going to the mart, with many mart managers reporting price increases once again this week for slaughter-fit lambs.

The ewe trade is holding, with the only quote coming from Kildare Chilling at €3.00/kg plus a 10c/kg QA bonus. Reported top prices continue to hit highs of €3.30/kg from what Agriland has been told for ewes.

‘Demand continuing to outstrip supply’

Speaking to Agriland about the sheep trade at present, the sheep chair of the Irish Cattle and Sheep Farmers’ Association (ICSA) , Sean McNamara, said: “Demand is continuing to outstrip supply – which has been the case for a long time now.

“Supplies of finished lambs are very tight and that is being reflected in the prices being paid out by factories currently.

“Lamb prices have pushed on considerably this past week or so and are now topping €6.80/kg.”