The fact that lamb prices are no different compared to this time last year is an absolute “disgrace”, the sheep chair of the Irish Cattle and Sheep Farmers’ Association (ICSA) has said.
Speaking during Agriland’s livestream of the National Ploughing Championships today (Tuesday, September 20), Sean McNamara spoke of his disappointment at current factory prices for lambs.
McNamara explained that the sheep sector has been affected by the increasing cost of inputs like every other agricultural sector.
“Input costs like concentrates have doubled, while fertiliser has seen astronomical price increases, hitting over €1,000 per tonne this year.
“Taking all this into account, the fact that sheep farmers are only getting the same prices as last year for lambs is a total disgrace. Farmers currently need to be getting €7.00/kg for lamb.
“For example, on my own farm at home, I worked it out that even if you were getting €7.00/kg, you would only be making €5 profit per head at the end of it when everything is paid for.
“Current prices are well off €7.00/kg and, even at that level, it’s still totally unsustainable,” according to McNamara.
The sheep chair added that, to have any sort of margin, the ICSA wants to see lamb prices at €8.50/kg.
“Factories say they can’t pay it, but they can as far as I’m concerned. They are only paying up to 21.5kg to farmers, but are yet getting paid for every kilo of lamb as some will kill out at 24-25kg deadweight.
“If nothing changes and we keep going the way we are going then, in the next few years, the breeding ewe flock will be reduced by half.
“Farmers can’t keep producing lamb below the cost of production, it’s as simple as that,” the ICSA sheep chair said.