The cost of disposing of sheep skins cannot be foisted on farmers, the ICSA has insisted.

A major problem with the disposal of sheep skins is already putting serious pressure on small abattoirs and threatening the viability of some businesses.

A collapse in demand for sheep skins has left many sheep processors unable to get the product rendered, said ICSA sheep chair Willie Shaw.

It is understood that some abattoirs have been forced to incinerate the sheep skins. This is costing in the region of €200/t or €3-5 per sheep.

ICSA has called on the Minister for Agriculture Charlie McConalogue and the Department of Agriculture to engage with the industry to find a solution to the problem.

"Several rendering plants have recently announced that, due to a significant decline in demand, they are no longer able to find a market for sheep skins,” Shaw said.

“As a result, some processors - especially smaller ones - have been left without a cost-effective way to dispose of the skins, which is certain to have knock-on effects for sheep farmers," he added.

"With rendering plants unwilling to take sheep skins, the only remaining option for processors is the considerably more expensive option of incineration.

"Smaller processors have informed ICSA that they will struggle to absorb these additional costs, which could potentially drive them out of business altogether and further reduce competition,” the ICSA representation stated.

“If a solution isn't found, these costs will ultimately be passed down to sheep farmers, who are in the weakest position of all to bear them. Sheep farmers simply cannot be expected to shoulder the extra burden of funding the disposal of sheep skins, especially since they do not receive any payment for the so-called fifth quarter,” Shaw said.

"We need urgent Government action to prevent the financial burden from falling on farmers. A solution must be found to manage the disposal of sheep skins that does not leave sheep farmers worse off," he insisted.