Factory prices cuts have wiped €10.3m off sheep sector incomes so far in 2023, according to Irish Farmers' Association (IFA) calculations on the 2022-2023 sheep price differential.

IFA sheep chair Kevin Comiskey has warned that farmers could be pushed out of the sector, as high input costs have not been followed by support from either processors or Government.

Teagasc figures for 2022 show a slashing of sheep farmer margins to €7/ewe in calculations which assumed all ewes in a flock would receive a Sheep Welfare Scheme payment.

The low-margin sector cannot sustain high input costs, Comiskey stated.

Confidence low

“Farmers cannot continue to sustain this level of cuts. Confidence in the sector is extremely low and farmers are exiting the sector due to the lack of support displayed to farmers,” he said.

“Factories and the Government are acutely aware of the loss-making situation sheep farmers are in, but refuse to support them.”

Comiskey maintains that the IFA has continually highlighted these concerns to Minister for Agriculture Charlie McConalogue.

“The Minister must come forward and provide farmers with a €30/ewe payment by building on the supports of the Sheep Improvement Scheme of just €12/ewe,” the sheep chair said, adding that this action must be taken with urgency.