Irish Lamb Market Update: Prices and Throughput
Quotes
Base quotes from major processors have seen a slight improvement this week, with prices ranging from €9.00/kg to €9.40/kg for well-finished lambs, including a QA bonus. Increased demand has led many processors to raise the carcass weight limit to 24kg.
The firming of the trade throughout 2024 has been driven by relatively tight lamb supplies and stable demand from both domestic and export markets. This trend is also evident in other key lamb-producing regions of Europe and the UK, where Eurostat figures indicate a contraction in breeding flock numbers. The Irish ewe flock, for instance, contracted by 3.7% in the December 2023 census compared to December 2022, a decline of 107,000 head, contributing to the tight supply situation.
Prices
For the week ending 12th January, the reported deadweight price increased by 31% to €8.75/kg, reflecting the ongoing improvement in quoted prices from major lamb processors. In the same week in 2024, the deadweight price was €6.62/kg.
The deadweight trade has also improved across UK regions. Last week, reported lamb prices in mainland GB were equivalent to €8.29/kg, a decrease of 4c/kg, while in Northern Ireland, prices improved to €7.95/kg, down 17c/kg. The firming trade in Northern Ireland is attributed to tight lamb supplies and competition from the live export trade to both mainland GB and ROI.
Southern Hemisphere prices, although still below European levels, have improved significantly in recent weeks, narrowing the price differential with the EU. This recent improvement in deadweight prices is expected to impact their competitiveness in EU markets in the medium to longer term. Prices this week are at €5.99/kg and €4.38/kg for Australia and New Zealand, respectively.
Throughput
There was a decrease in the total sheep kill in DAFM-approved plants last week, with 34,008 head processed compared to 57,313 in the same week in 2024. Tighter supplies have been a feature of the 2024 lamb season, influenced by a smaller lamb crop, difficult lambing conditions, and variable grass-growing conditions. Total year-to-date (YTD) slaughter is down 32% from 2024, totaling 70,274 head.
