The sheep sector in Ireland is at a critical point according to IFA sheep chair Kevin Comiskey, with market prices failing to reflect the production cost increases farmers have had to endure over the past two years.

“The difficulties in the sheep sector are increasing as factories drop prices again,” Comiskey highlighted.

He was responding to the moves made by factories to take control of the lamb trade following the end of peak buying for the Islamic religious festival of Eid al-Adha.

Difficulties

The IFA sheep chair described the challenges sheep farmers are facing at present.

He highlighted that the sheep welfare scheme (SWS) payout in 2022 was included in the income levels on sheep farms last year, which plummeted to just €7/ewe.

Comiskey said that in 2022, with the SWS payment factored in, sheep farm net profits dropped by 81% to just €7/ewe, while farm gross margins dropped by 14%.

He warned that prices are averaging over 40c/kg behind 2022 for the year to date for hoggets and lambs, equating to a further cut of over €9.5m in sheep farmers’ incomes for the year.

“Weak market prices this year have compounded the problem and is effectively leaving every sheep farmer in a severe loss-making situation,” he said.

Income loss

Comiskey insisted that “sheep farmers do not have the capacity to endure this level of income loss and immediate action is required”.

“Factories and Bord Bia must do more in the market place to return a viable price for sheep farmers.

“The Minister for Agriculture must deliver meaningful targeted payments of at least €30/ewe to provide economic viability on sheep farms.

“Direct payments contributed 110% to overall family farm incomes in 2022 and a targeted €30/ewe payment is essential to support the sector,” he added.

Darren Carty has the lastest on sheep prices here