“It has been a more positive year for sheep farmers, with stronger prices a welcome and badly needed boost following on from a difficult 2019 for prices and the weather-related ewe and lamb losses experienced in 2018.”
That’s according to the sheep chairperson of the Irish Farmers’ Association (IFA), Sean Dennehy.
In a wide-ranging interview with AgriLand, Sean reflected on the sheep sector in Ireland in 2020 and how it compared to 2019 and also what 2021 might hold for sheep farmers.
He said: “The sheep sector remains a low-income sector and heavily dependent on meaningful direct supports to sustain production and, critically, the viability of sheep farmers.
Generational renewal is a key issue for the future of the sector, where the age profile of farmers is the highest of all commodities.
“Strong market returns and meaningful direct supports are crucial to achieving this.”
‘Strong year for lamb prices despite the disruption of Covid-19’
Reflecting on how Covid-19 impacted the sheep sector here in Ireland, Sean said it ended up being a positive, as lamb prices increased and stayed strong throughout the year.
He added: “When the Covid-19 controls came into force throughout Europe, resulting in lifestyle changes overnight and the closure of the foodservice sector, sheep farmers, like all other farmers, had huge concerns for the impact this would have in the marketplace for lamb.
“Fortunately, a combination of factors meant demand for lamb throughout Europe increased. Supermarket sales of lamb, both in terms of volume and value, increased as the purchasing behaviour of people in lockdown situations changed.
The trade this year also benefited from reduced competition across European markets from both southern hemisphere and UK supplies.
“Back in spring, the convergence of Easter and Ramadan festivals provided a springboard for Irish lamb demand, at a time when demand for other red meats were in decline. Prices increased as a result, and that trend continued.
“The increase in supplies over the summer months did not result in a negative impact on prices.
“EU sheepmeat imports from international markets such as Australia and New Zealand fell by 17%, as these countries looked to capitalise on the current meat-protein deficit in China as a result of African swine fever (ASF). Along with the decline in UK sheepmeat exports to Europe, this improved the prospects for Irish lamb, with exports to markets such as France, Germany and Belgium all performing strongly.
The average reported price for the year-to-date [including VAT] is €5.51/kg compared to €5.01/kg in 2019 – representing a 50c/kg or 10% increase.
“We are [the IFA] continuing to lobby for an increase to 30c/kg in the quality assurance bonus to appropriately reward farmers for participation in the SBLQAS [Sustainable Beef and Lamb Quality Assurance Scheme].”
Sheep throughput
The sheep kill, particularly in the case of lambs, soared right ahead of 2019 for most of the year; however, in the latter part of this year, supplies tightened and this led to the kill falling in line with 2019.
Sean added: “The total throughput for sheep currently is 2,748,849 head, which is 2% higher than the corresponding period in 2019. Increases in spring lamb and hogget throughput earlier in the year have accounted for this higher level.
“The number of slaughter-fit lambs tightened considerably in the last few weeks of the year, bringing the total kill back more in line with 2019 figures.
A reduced supply of breeding hoggets and renewed confidence in the industry resulted in a very strong demand for ewe lambs for breeding and retention in the latter part of the year.
“Live imports of lambs for direct slaughter have reached 334,802 head so far this year. This is a decline of over 25,000 head compared to the same period 12 months ago or a 7% reduction.
“In addition, live exports up to September this year reached 24,807, up from 7,161 in 2019 with 16,574 of these to France. Furthermore, this trade has continued in recent weeks.”
Mart trade
Sean noted that the mart trade has consistently remained strong throughout 2020 and that a renewed interest in the sector saw farmers rewarded with good prices for their sheep, despite marts having to deal with the disruption Covid-19 caused.
He explained: “The mart trade performed very strongly this year for lamb and provided a real alternative for farmers unable to secure the higher weekly prices from factories.
“Marts had a particularly difficult time with closures of the auction system in the first lockdown and only online bidding facilitated in the second lockdown. He said mart managers and farmers adapted and ensured the trade continued despite the obstacles.
“We made strong and continuous representation to the minister and to Department of Agriculture officials to ensure meat processors and marts were facilitated in functioning throughout the Covid controls.”
Schemes, wool market and dog attacks
Rounding off the interview, Sean highlighted the struggles farming continues to face with regards to wool prices, dog attacks on sheep and relevant schemes to sheep farmers.
He said: “The Sheep Welfare Scheme (SWS) is a very important scheme for sheep farmers and its rollover for the two years of transition of the CAP [Common Agricultural Policy] is welcome.
“This scheme must be built on to return €30/ewe to farmers. In addition, while the scheme accepts new entrants for 2021, we are seeking the provision of a new reference year to allow flock owners who have expanded their flock numbers to have their payments in the scheme reflect the level of activity on the farm.
This is an important step in supporting progressive sheep farmers and providing a strong signal to the sector to help generational renewal which is vital for the future viability of the sheep industry.
“In terms of the wool market, it was a particularly difficult year for wool. We met the Department of Agriculture and sought investment in developing alternative markets and outlets. €100,000 was allocated to this in the budget and the study has commenced.
“The lack of effective dog control remains a huge issue for sheep farmers with uncontrolled dogs creating havoc on farms mauling and killing sheep and lambs.
We met with Minister Malcolm Noonan on responsible dog ownership, highlighting the damage dog attacks are inflicting on sheep farms and seeking key changes on databases, warden service and penalties.
“We pointed out to the minister the traceability standards met by farmers for all of our livestock and the absence of a similar detailed record on dogs and their owners. In addition, we highlighted in the national media the importance of responsible dog ownership.”
2021
Looking towards 2021, Sean concluded by saying: “The key priorities in 2021 will be ensuring sheep farmers get the maximum returns from the marketplace.
“A €30/ewe scheme and developing the strategic plans for the new CAP that recognises and supports the value both in terms of quality food production and environmental value of sheep farming, which is often carried out on the most difficult land and conditions that are farmed in this country.”