Sheep sector under severe pressure- ICSA
Current factory quotes of €7.50 to €7.70 per kilogram are leaving farmers with minimal returns
Irish sheep farmers are facing mounting financial pressure as domestic lamb prices fall significantly behind those in other EU member states.That's according to Willie Shaw, Sheep Chair of the Irish Cattle and Sheep Farmers’ Association (ICSA).
Mr Shaw said current factory quotes of €7.50 to €7.70 per kilogram are leaving farmers with minimal returns.
“Factories are quoting around €7.50 to €7.70/kg here. At the moment in Spain, lamb is making €10.77/kg and in France it is €9.73/kg. That €2 to €3/kg difference adds up to a staggering €75/hd, and there is no justification for Irish farmers to be so far behind those markets,” he said.
He warned that the widening price gap with key EU markets such as Spain and France raises serious concerns about how the Irish market is operating.
“When Irish farmers are €2 to €3/kg behind Spain and France, serious questions must be asked about how our market is functioning. We are producing to the same EU standards. Our costs are not lower, and once inputs and overheads are taken into account the margin left on a lamb is extremely tight. If you are lucky you might clear €25 per lamb. That is before you account for the reality that sheep farming is a seven day a week, and often a round the clock job. That is not a viable income, and it is certainly not a signal that would encourage a young person into sheep farming.”
Mr Shaw also pointed to concerns around the Sheep Welfare Scheme, suggesting it is masking deeper structural problems within the sector.
“Farmers are maintaining ewe numbers because they are tied into scheme commitments. But many are simply waiting for those commitments to end. Many farmers I speak to are just hanging on until they have the option to step away. That tells you there is something seriously wrong.”
Concluding, Mr Shaw said current prices are not giving farmers any reason to remain in the sector. “At €7.50/kg, sheep farming in Ireland becomes a fool’s game, not a livelihood.”