Around half of sheep farmers have a positive outlook for the sector, based on an “excellent” year in 2021, despite concerns over rising input costs and farm financials, according to farming accountancy group Ifac.
Ifac has released its Irish Farm Report 2022, which reviews the year 2021 across the various sectors.
In 2021, average sheep prices reached €6.67/kg, a 27% increase from 2020. At the same time, throughput decreased by 4% in 2021 compared to the previous year.
While the drop in throughput played some part in the rise in prices, the main driving force was increased demand for lamb from export markets, according to Ifac.
In terms of the biggest challenges for the sector, 70% of sheep farmers surveyed cited the cost of inputs, while 11% answered with environmental issues.
61% of sheep farming respondents said their farm financials were the biggest concern for 2022. Three out of every five of them said they did not have a will.
2022 has continued in the same fashion as 2021 with strong prices holding so far, while throughput of lambs in the first 9 weeks increased by 14% with demand still strong. This early year increase may indicate a shift in lambing times, with more farmers opting to move to mid-season lambing.
Despite that, the outlook for the year is uncertain. While current prices appear to be excellent, the “uncontrollable rise” in costs will quickly erode this gain, according to Ifac.
The group advises farmers to “sit down and plan for the year ahead”, saying they should aim to maximise thrive from grass, with extra focus on managing grazing.
Grazed grass is still the cheapest option for sheep farmers, despite fertiliser issues, Ifac says. Farmers should also target an adequate amount of silage for the winter.
A decision must also be made around the use of purchased feed and although this will vary a lot, it is important to be sure of the ‘pros’ and ‘cons’ around feeding, such as reduced days on farm versus the additional cost and availability of concentrates.
Forage crops may also provide a cost-effective option for finishing lambs to reduce reliance on bought-in feed.
“With so much uncertainty it is crucial to ‘control the controllable’ and reduce volatility as far as possible inside the farm gate. Planning is now more important than ever to control costs.”
According to Ifac, the key areas for sheep farmers to focus on for 2022 can be summarised as follows:
- Budget timing and quantities to be sold;
- Grazing infrastructure and grass quality;
- Plan to produce good quality forage for security;
- Assess stocking rate and lambing.