After weeks of price cuts, the IFA met with major lamb processors and Meat Industry Ireland (MII) to discuss the recent price trend.

Two major messages were delivered by IFA president Eddie Downey and IFA National Sheep Committee chairman John Lynskey, that the price cuts were excessive and seriously damaging to farmers’ incomes and that lamb prices can rebound based on market returns and must be maintained to restore confidence to the sector.

It was agreed to set up a working group between IFA, the lamb processors, Teagasc and Bord Bia on the light lamb trade.

Speaking at the meeting, Eddie Downey said sheep farmers need a return of at least €100/lamb and the combination of price and weight has to be adequate to deliver this type of return. Downey also told the factories the price cuts of over €1.00/kg or €20/lamb in a two- to three-week period cannot be justified.

“With up to 50,000 additional new season lambs already moved over recent weeks and higher prices in both the UK and France, there is an opportunity to restore and stabilise returns here,” he said.

John Lynskey said income levels on sheep farms remain a huge problem, with an income fall of 39% to just €11,160 for 2013, according to Teagasc.

He added that sheep farmers must be given the opportunity to recover and strong lamb prices are essential.

Lynskey also highlighted that lamb consumption remains a challenge and the recent price cuts have to be matched with strong promotions from the retailers, in order to shift more volumes on the domestic market.