Factory cuts of around 50c/kg this week, with a possible further 20c/kg cut next week, will wipe “almost €15 off the value of every lamb in under a fortnight”.

That’s according to the Irish Cattle and Sheep Farmers Association (ICSA).

ICSA sheep chair Willie Shaw said: "No business can survive when that level of value disappears off every lamb in such a short period.

According to Shaw, there was "no obvious justification" for the initial cuts, or for the further reduction now being signalled.

"Throughput is still well back on where we would normally expect it to be at this stage of the season, so it is very difficult to understand why factories have moved so aggressively.

“Nobody looking at the number of lambs coming through factories could honestly say these cuts were inevitable," he said.

Challenge

Shaw said the biggest challenge facing sheep farmers was the complete uncertainty around what they would be paid from one week to the next.

"Every other cost on the farm remains high," he added.

“The only thing that seems capable of changing overnight is the price paid to the farmer.”

He stressed the difficulties in running a business under such uncertainty.

He added: “You cannot plan a business like that. Farmers need some confidence that if they produce a quality product, they will get a fair and consistent return for it.

He added that farmers put months of work into producing quality lambs.

“They cannot simply switch production on and off depending on what factories decide to pay in any given week,” he said.

“If supplies remain tight, prices should reflect that. It is as simple as that."

‘Cannot survive’

Shaw said the latest cuts only reinforced the point ICSA had been making in recent weeks.

"We highlighted the fact that sheep farmers cannot survive on one good month,” he said.

“Unfortunately, that is exactly what is happening again. Just when farmers think they might finally be getting a return for a year's work, the price is knocked back.”