IFA national sheep chair Sean Dennehy said the factories were over the top with their drive to pull lamb prices. He said market demand for lamb is very strong and the factories can pay a lot more than their low quoted prices.

Some factories are paying 20c/kg to 30c/kg over quoted prices to get numbers. “It’s clear market demand is very strong and factories can pay a lot more than the low quoted prices they are offering.”

Sean Dennehy pointed out that lamb prices in the UK are up 15p/kg liveweight this week, with yesterday’s standard quality quotation (SQQ) at £2.30/kg liveweight, which is equivalent to €5.70/kg including vat.

He said some factories were up to skulduggery using lamb imports to put pressure on local suppliers. “With an abundant supply of lambs here, factories should be looking after their local suppliers, not importing lambs from Britain.”

Growers had made considerable investment in their malting barley crop before COVID-19 hit the drinks trade

The IFA has written to the Minister Creed demanding that the Department of Agriculture publish the number of lambs imported each week and where they are coming from.

Dennehy said: “The Department has the information on lamb imports and it must be made public. There needs to be a lot more transparency around lamb imports and how they are being used by the factories.”

Diageo support should extend to growers

All stakeholders in the Irish drinks industry must recognise the ongoing effort and commitment which growers have put into producing quality malting barley

IFA president Tim Cullinan said he noted the support Diageo is offering to the pub trade, and he encouraged them to extend this to growers.

“Growers had made considerable investment in their malting barley crop before COVID-19 hit the drinks trade. Everybody is hoping the reopening next week goes smoothly, but growers cannot be left behind,” he said.

“All stakeholders in the Irish drinks industry must recognise the ongoing effort and commitment which growers have put into producing quality malting barley. This has seen an expansion in the area sown. Notwithstanding the difficult market conditions, it’s imperative that drink companies do everything possible to back the primary producer in the supply chain,” he said.

Tillage

IFA grain chair Mark Browne said the earlier drought conditions have had a severe impact on the tillage sector. At best, many growers will have significant yield reductions while in other situations, entire crops are a write-off.

“The situation is particularly critical right up through the midlands and into the east and northeast.

“Recent rain has been very welcome in these areas. For some, it has been too little too late,” he said.

Extension of deadline for payment break on loans important

The chair of the farm business committee Rose Mary McDonagh has welcomed the extension of the deadline for payment break applications for those whose income has been impacted by COVID-19.

The pinch is only being felt now

“The postponement to 30 September from the end of June for first-time applicants for a loan break is much more realistic and practical.

“In recent meetings with the banks, I have outlined that the impact on income is delayed for some farmers.

“The pinch is only being felt now, or certainly will be in the next few months. Farmers who need this break must make sure they avail of this opportunity and avoid falling into the non-performing loans category,” she said.

While these payment breaks will assist in the short-term, the IFA is urging the incoming Government to urgently legislate for the COVID-19 Credit Guarantee Scheme and the second phase of the Future Growth Loan Scheme to support farmers.

Eligibility

While both are open to farmers, it is imperative to establish the terms and conditions, as well as eligibility criteria.

“Farmers are going to have increased costs, as well as credit and cashflow problems due to this crisis.

“These schemes must be low-cost and open to farmers across all sectors to assist with working capital, investment and credit issues,” McDonagh concluded.