Lamb supplies are finely balanced, with factory agents becoming much more anxious to negotiate deals. The shorter week appears to have reduced the pressure on factories to source sufficient numbers for this week, with quotes for Thursday remaining unchanged.

Kildare Chilling remains top with its quote of €4.45/kg plus 10c/kg quality assurance (QA) bonus. The two ICM plants continue with their base of €4.35/kg plus 10c/kg QA but a significant positive change is the two plants increasing their carcase weight limit from 21.5kg to 22kg since Tuesday. Kepak is quoting €4.30/kg plus 15c/kg for QA lambs, while Moyvalley Meats and Ballon Meats are unchanged on all-in quotes of €4.40/kg and €4.50/kg respectively.

Reports show a high percentage of quality-assured lambs traded by individual sellers ranging from €4.50/kg to €4.55/kg. Regular sellers with greater negotiating power are in cases securing an extra 5c/kg with this also reflected in stronger purchasing activity in many marts.

Top prices for group lambs are rising to €4.65/kg to €4.70/kg on average depending on the bonus mechanism in place.

Ewe supplies are also tightening and this is reflected in last week’s kill figures.

Lamb throughput of 53,337 head reduced by just 642 head while ewe and ram throughput fell by 1,723 head to 9,348. Quotes range from €2.30/kg to €2.50/kg with Ballon Meats and Kildare Chilling offering the highest price.

The tightness in supply is also starting to be seen in mart sales, with more bite for reducing entries.

Northern trade

The number of sheep imported for direct slaughter from Northern Ireland reduced last week by 399 head to 9,782.

Buyers purchasing on behalf of southern plants in marts have stepped up activity in recent days, with many mart managers reporting a £1 to £2 per head lift in lamb prices as a result.

Last week’s lamb throughput in Northern plants increased by 147 head to reach 8,580. Quotes are static at £3.45/kg with top price 5p/kg to 10p/kg higher.

The sterling to euro exchange rate is holding its recent strengthening and at 86.2p to the euro the quote of £3.45/kg equates to €4.00/kg and €4.22/kg VAT inclusive at 5.4%.

Reports show some producers having more success in negotiating leniency on carcase weight over price.

AHDB price reporting shows British lamb prices unchanged at £3.76/kg (€4.36/kg and €4.60/kg including VAT). Throughput continues to run ahead of 2018 levels, with the latest weekly kill of 278,900 head up 14,400 head year-on-year.