After a few tough weeks for the sheep trade it seems that markets are beginning to firm up, with some of the lower-paying processors moving to increase lamb price by 5c/kg this week.

Last week, factories had inflicted cuts of up to 20c/kg for lambs, which along with the previous week’s cuts meant up to 60c/kg was wiped off lamb prices in just over a week.

In less than a month, lamb prices have fallen by €1.00/kg or €21 on a 21kg carcass.

Base prices for today (Monday, August 8) for lambs are ranging from €6.30-6.40/kg, with quality-assured lambs moving at prices ranging from €6.40-6.50/kg.

Top prices for lambs are reported to be ranging from €6.50-6.60/kg in general.

Most processors are paying for up to 21kg carcass weight on lambs this week.

Ewe prices unchanged

Ewe prices remain generally unchanged with base prices ranging from €3.30-3.40/kg.

Ewes have also been subject to price cuts, with prices falling back since early July by 70c/kg, when base prices peaked at €4.00/kg.

ICSA sheep chair’s comment

Commenting on the trade, the Irish Cattle and Sheep Farmers’ Association’s (ICSA’s) Sheep Committee chairman, Sean McNamara, believes the supplies of finished lambs are “set to get scarce”.

He said: “Many farmers have decided to cut back on meal feeding this year and with a lot of the earlier lambs gone through the system already, the supplies of finished lambs could get scarce now for a few weeks.”

The ICSA sheep chair added: “Lamb prices are back 13.5% in price in the last three weeks. What industry would stand for that? Farmers are being short changed up to €1 million/week for lambs currently.”

Explaining how he believes this to be the case, McNamara said: “50,000 lambs/week at €20/head less than the price three weeks ago equates to €1 million less per week.”

McNamara believes lamb price is “on the way up” and said that some processors have already moved to increase lamb prices for this week.