Lamb trade steadies after recent slide

Marts: Although producers are disappointed at where the lamb price has landed so early in the season, there has been a sigh of relief at the steadier trade following the recent landslide in returns.

Yesterday factories were offering producers a base of 465-460c/kg (166p-164p/lb), for new season lambs, with the usual bonus of 6c/kg (2p/lb) for quality lots, which is in line with the trade a week earlier — the first week in the last month during which prices did not fall.

Producers argue that return at this level is inadequate to compensate for the higher production costs in 2008, arising from higher concentrate prices added to by the late spring and poor grass growth.