The upward trajectory in the sheep trade is continuing this week, according to IFA sheep chairman, Sean Dennehy.
He said to meet this demand, €5.60/kg is available from “all factories” with deals pushing prices above these levels for larger lots and groups of lambs.
He added that factories are freely offering weights to 22.5kgs with 23kgs offered to secure lambs.
Tight supplies and strong market conditions
“Supplies are tight and strong market conditions have pushed prices on a further 5c–10c/kg for some sellers as factories struggle to fill orders on the lead into Christmas.”
The numbers of lambs processed weekly for the past eight weeks is below the corresponding period in 2019. Dennehy said this situation that is projected to continue based on available supplies and this will help drive the trade.
In addition, the strong performance of lamb in the supermarket trade throughout the year is expected to intensify over the coming weeks as Christmas approaches.
“Strong competition between factory agents, butchers and wholesalers is driving the mart trade. Returns are comparing very favourably, particularly for those not securing the higher factory prices,” he said.
The cull ewe trade has also strengthened with prices ranging from €2.70 to €3/kg.
Dennehy said farmers should continue to move lambs as they become fit to maximise returns from the marketplace.