€20/hogget taken from farmers’ pockets

Sheep producers are facing renewed price pressure this week, with hogget quotes pulled by 20c/kg compared to last week. Base quotes are in the region of €8.60/kg in most plants, with quality assured hoggets offered returns ranging from €8.70/kg to €8.90/kg. The price pressure comes following the recent cuts to carcase weights from 24kg back to 23kg.

IFA national sheep chair Adrian Gallagher has criticised what he describes as unjustified and unacceptable cuts.

“The combination of cuts to paid carcase weights and now price has taken up to €20/hogget directly from farmer’s pockets. We heard stories in recent weeks of factories being concerned about the fall-off in ewe numbers and longer-term supplies, and looking to initiatives to maintain numbers.

"But then they turn around and introduce unjustified cuts, which are irresponsible and if not reversed immediately will have serious long-term implications,” he said.

The cuts have also had severe ramifications for the live trade and hit confidence hard. Eric Driver, Tullow Mart manager and secretary of Associated Livestock Marts said the recent hit to farmgate returns is punishing farmers who listened to factory market signals.

“Factories encouraged producers to feed hoggets to heavier weights with rewards of increased carcase weights. Now overnight they are telling these same producers they have no markets for their sheep. They have left producers who committed to feeding sheep high and dry and then wonder why numbers are falling.”

Meat industry sources continue to blame excessive carcase weights and marketing challenges in export markets including poorer than anticipated demand from the Islamic religious festival of Ramadan for the reduction in weight limits and price reductions.