Meat factories and the government have been heavily criticised by the national sheep chair of the Irish Farmers’ Association (IFA) for the “lack of meaningful support” for the sheep sector.
Kevin Comiskey said that an estimated €10.5 million have been wiped off sheep farmers’ incomes in 2023 to date, when compared to the price differential from last year.
The crisis in the sheep sector is “deepening” as prices continue to lag behind last year’s levels, with farmers in a critical loss-making situation, according to the IFA national sheep chair.
Accusing Minister for Agriculture, Food and the Marine, Charlie McConalogue and the government of “sitting idly by while the sector is collapsing”, he said:
“Factories and the government are acutely aware of the loss-making situation sheep farmers are in but refuse to support them.”
Minister McConalogue has “failed” to take action on the situation of Irish sheep farmers which, Comiskey said can be only addressed with immediate direct supports.
“The minister must come forward and provide farmers with a €30/ewe payment by building on the supports of the Sheep Improvement Scheme (SIS) of just €12/ewe,” he said.
The IFA national sheep chair urged the minister to indicate what actions he is going to undertake to resolve the “challenging situation” on sheep farms as a matter of urgency.
Sheep sector
Input costs on sheep farms have increased by over 40%, according to Comiskey, which is “effectively eroding all margins in an extremely low-income sector”.
“Teagasc figures showed income levels on sheep farms dropped by over 80% last year to just €7/ewe which included the [previous Sheep Welfare Scheme] SWS payment.
“Farmers cannot continue to sustain this level of cuts, confidence in the sector is extremely low and farmers are exiting the sector due to the lack of support displayed to farmers,” he said.
Speaking about the impact of New Zealand (NZ) and Australian sheepmeat imports to the UK on Irish sheep prices earlier this week, Comiskey said Irish farmers “can’t compete” with such low prices.
Stating that NZ lamb is coming in at €3.95/kg, and Australian lamb is coming in at €2.89/kg, the IFA national sheep chair said:
“That’s supplying the UK market, and the UK lamb is making its way to the European market and distorting the market and putting it under pressure.
“You can’t compete, our biggest market is between the UK and France, and when NZ and Australia are putting in lamb at those prices, we can’t compete at over €6.00/kg.”