Sheep farmers supplying lambs to factories are in a weak position due to drought, with one farm organisation claiming that the factories are benefitting from this.
The Irish Cattle and Sheep Farmers' Association (ICSA) said that drought conditions are putting sheep farmers under increasing pressure.
Willie Shaw, the association's sheep chair, claimed that this gives factories an opportunity to drop the prices they pay for lambs.
He said that farmers are being forced to move lambs earlier than planned due to grass shortages.
"When those lambs are underfleshed, farmers are in a weak position and factories know it," Shaw claimed.
The ICSA sheep chair said: "Farm families are under pressure for cash at this time of year, but when you combine that with a serious lack of grass, it creates a perfect storm for sheep farmers.
"Farmers have fewer options and factories know it," he claimed.
According to Shaw, the drought is also affecting the store trade, with traditional buyers unable to take store lambs.
"The store trade is being hit as well. Farmers who would normally buy stores are holding back because they simplify don't have the grass either," he said.
"So you have lambs being moved earlier than planned, while the normal outlet for store lambs is also being restricted," he added.
"That leaves farmers with very little room to manoeuvre.
According to Shaw, sheep throughput figures do not indicate that the market is facing an oversupply of Irish lambs.
"Despite a couple of weeks were throughput has been elevated, overall sheep throughput is still down on last year," he said.
"What we are seeing is drought forcing some lambs to be sold earlier than planned," Shaw added, claiming that this is a "temporary weather-driven pressure" rather than a market trend.
"It doesn't mean there has suddenly been a fundamental change in sheep supplies.
"Factories know this pressure is being caused by drought, not by some sudden oversupply of lambs," the ICSA sheep chair said.