The ruminant livestock sector is currently reacting in line with the basic economics rule of supply and demand, according to Stuart Ashworth, Head of Economic Services with QMS.

Across the UK and Ireland hogg prices continue to improve as a result of supplies being greatly diminished on last year, while the fall in prime cattle prices is largely driven by increased cattle availability.

"Bord Bia report the Irish lamb kill is down 25% on this time last year and since the turn of the year the kill has been 11% down. Scottish auction markets and abattoirs similarly report current hogg throughputs 20-25% lower than last year," said Mr Ashworth.

With Easter fast approaching there has been a modest increase in hogg numbers reaching the market, but with a lower number of hoggs carried into 2014, numbers are still struggling. to match those of last year.

It is then not surprising that farm-gate prices are continuing to rise in Scotland and also across the UK and Ireland. With the exception of Romania, all the major European sheep-meat producing nations reported a smaller total flock at the turn of the year, meaning the supply of sheep meat remains tight.

"With Scotland, Ireland, Greece, Spain and France all reporting smaller ewe flocks in December 2013," said Mr Ashworth.

"This basic supply situation across Europe has led to a steady export demand but, with lower production, UK sheep meat traders have not always been able to benefit from this.

UK exports of sheep meat between November and the end of the January fell year-on-year.

However, with lower deliveries coming from New Zealand, the volume of overall sheep meat available in the UK over this period fell, underpinning price improvement.

Mr Ashworth went on: "New Zealand saw reduced production during January, but February slaughter volumes have increased year-on-year.

Nevertheless, strong demand from China and requests from Europe mean greater competition for New Zealand lamb."

Market round-up

The Cumberland and Dumfriesshire Farmers Mart sold 5391 prime hoggs in Longtown on Thursday to a top of £128 per head and 316p per kg to average 219p (+3,6p on the previous sale).

There were also 3286 cast sheep forward when heavy ewes sold to £159 for Texels and averaged £99.69 (+68p), while light ewes peaked at £92 for Blackfaces and levelled at £63.04 (+£3.32). Rams sold to £172 for a Texel and averaged £97.83 (+£4.77).

Messrs Craig Wilson Ltd sold 271 store heifers at Ayr on Thursday to a top of 244.2p and an average of 216.2p (-8p), while 351 store, beef-bred bullocks peaked at 289.8p and levelled at 226.9p (-7.2p).

Eighty-three store, B&W bullocks sold to 184.6p and averaged 162.1p (+1p).