Pressure is growing on the government to agree an immediate support boost for Ireland’s sheep and wool sectors.
The long-term vehicle for this proposed measure is the Sheep Improvement Scheme (SIS).
Irish Cattle and Sheep Farmers’ Association (ICSA) general secretary, Eddie Punch told Agriland: “Sheep and wool have become almost the forgotten sectors of Irish agriculture.
“The transition from the old Sheep Welfare Scheme (SWS) to the current Sheep Improvement Scheme brought with it an increase in the ewe payment from €10/head to €12/head.
“But this change takes no account at all of the increased costs that have impacted across the Irish sheep sector over the past year and more.”
Essentially, the ICSA wants the SIS payment increased to €30/ewe with an additional €5 wool payment also made available.
“This is our long-term objective. In the short term, the government can provide monies from the Brexit Adjustment Reserve [BAR],” Punch continued.
“All the other meat sectors availed of monies from this fund over the past number of years; there is no reason why sheep and lamb cannot be treated in a similar manner.
“And time is running out where this support option is concerned. The availability of this funding is time limited. Brussels will simply reclaim monies within the reserve that have not been allocated by the Irish government.
“This should not be allowed to happen.”
Sector prices
Punch points to the fact that market prices for all the main food commodities dipped post-Covid-19, but then rose again.
“I know that dairy prices have dropped significantly over the past 12 months. But this was from a record high level,” he commented.
“However, this did not happen, where sheepmeat prices are concerned. And Irish lamb prices remain under pressure.
“Live imports from Northern Ireland, e.g., have been boosted by a relatively weak pound. Prior to Brexit, the pound was worth €1.40, today the figure is €1.16.”
The ICSA representative also pointed out that a weaker sterling is boosting lamb and sheepmeat exports from Great Britain into the EU.
“This is creating greater levels of competition for Irish sheepmeat exporters,” he stressed.
“Adding to the downward pressure on sheep markets is the increased access that lamb exports from New Zealand will have to the UK market.
“The UK and New Zealand signed up to a free trade deal a few months ago. More lamb coming into the UK, essentially, means more lamb coming into Europe as a whole.”
Punch explained that Irish sheep farming margins are coming under increased pressure and has urged the government to respond accordingly.
“In the short-term, monies can be taken from the BAR. But in the longer term, the need for an increase in the SIS payment up to €30/ewe is obvious,” Punch said.