Sign in to your account
Forgot / Reset Password? Click here
Not registered with Farmers Journal? Register now to read 10 Journal+ articles for FREE
Or

To redeem your unique loyalty code from the print edition click HERE
Just one final step...
You must confirm your email address by clicking on the link we’ve sent to your email address.
You are only one short step away from reading...
Ewe premium to save sheep farmers' profitability in 2017
Register below to read ten Journal+ articles
for free per month.
Or to redeem your unique loyalty code
from the print edition click HERE
Only takes a second!
Already registered with Farmers Journal? Sign in
By registering an account you agree to our Privacy Policy and Terms of Service.
code

Ewe premium to save sheep farmers' profitability in 2017

By on
Lamb prices will decline next year, but the introduction of the sheep welfare scheme will fill the gap and lead to a slight increase in margins on most sheep farms, according to Teagasc's outlook.
Lamb prices will decline next year, but the introduction of the sheep welfare scheme will fill the gap and lead to a slight increase in margins on most sheep farms, according to Teagasc's outlook.

After a 3% gain this year, Teagasc economists forecast that Irish sheep farmers’ gross margin will continue to grow at a rate of 4% next year. This is despite a negative outlook for Irish and EU lamb prices, backed by a complex economic scenario.

On the one hand, global lamb supplies are expected to tighten, with Australia and New Zealand cutting their production. This is likely to push international prices up. But, in Europe, Irish lamb will be undercut by British producers made more competitive by the weak sterling exchange rate, and by beef becoming cheaper.

The weaker pound sterling will put downward pressure on the price Irish exports to the French market can expect to receive in 2017

“The UK is the largest lamb producer in the EU and is Ireland’s principal competitor on the French market,” Teagasc’s Kevin Hanrahan and Anne Kinsella wrote. France is the main market for Irish lamb, absorbing 38% of our exports. “The weaker pound sterling will put downward pressure on the price Irish exports to the French market can expect to receive in 2017. Our forecast is that lamb prices in 2017 will decline by 5% on the 2016 level,” the authors added.

Fertiliser prices

Input costs are expected to decline, driven by the low fertiliser prices observed recently, but not enough to make up for the lamb price drop.

This should eat into sheep farmers’ profitability, but when the new sheep welfare scheme is factored in at the rate of €10/ewe, Teagasc’s estimate is that their gross margin will increase by 4% to €568/ha.

Teagasc's forecasts are based on mid-season lowland lamb production.

Listen to "Discussing Teagasc's outlook for 2017" on Spreaker.

Read more

Teagasc sees 5% farm income growth next year

Lamb prices continue to build

Full coverage: Teagasc outlook 2017

Read the full report: Teagasc annual review and outlook

Related tags
Related Stories
Journal+
Sheep trends: lamb prices hold firm
70 Quality TEXEL Inlamb Shearling Ewes from Annakisha,Chessy,Emlach and Foundry ...
suffok shearling ewes all scanned in lamb to imported sires from the Annakisha ...
West Region Texel Club Show and Sale of in lamb Shearlings Ewes and Maiden Ewe L...
Friday Evening 9th December in Omagh Mart @ 7pm. J Foster. Ready for immediate ...
85 in-lamb gimmers at Hilltown Mart, Co Down on Friday evening 16th December at ...