Legislation and funding to allow sheep farmers to establish producer organisations (POs) are on the way, according to Minister for Agriculture, Food and the Marine Charlie McConalogue.
Speaking in the Seanad today (Wednesday, April 19) in a debate on the sheep sector, the minister said that legislation is being drafted to give legal recognition for sheep POs and to provide funding for them to meet the costs of setting up.
He told senators: “We’re advanced in drafting legislation to give legal recognition to sheep producer organisations which can strengthen farmers’ positions in the food supply chain.
“This will bring benefits around collectively negotiating on price and inputs, as well as payments of €3,000 to cover set-up costs, and €30,000 over three years to help with administration fees.”
The minister was asked to appear before the Seanad to take questions from senators on the challenges in the sector in terms of farmer margins, despite a recent boost in prices.
A recurring theme throughout the discussion was wool and the lack of a market outlet for it.
Many senators commented on the benefits of wool as a sustainable product, citing its potential as a form of home insultation.
A number of senators also outlined that, for many sheep farmers, the return on wool does not cover the cost of shearing sheep.
One senator, Tim Lombard, called on the minister to provide financial support to the sheep sector in a similar way to the Pig Exceptional Payment Scheme (PEPS), which was rolled out twice last year to assist pig farmers.
Minister McConalogue said: “I recognise that margins on sheep farms have been under pressure, particularly over the last number of months, as a result of increased input costs and lower prices, which are below the record levels in recent years.
He added: “If we want to maintain flock numbers, we need to continue targeting farm income supports, while increasing the return from the market place.
“What every farmer wants is a fair price for their product,” Minister McConalogue commented.