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 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.

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.