A major problem with the disposal of sheep skins is threatening to halt operations at a number of small abattoirs, the ICSA has warned.

A collapse in demand for sheep skins has left many processors unable to find an outlet for the product.

“The problem has been exacerbated by the failure to renew a crucial derogation agreement with the United Kingdom, which left some abattoirs without a viable means of selling or disposing of sheep skins,” ICSA general secretary Hugh Farrell said.

While some processors are salting skins with a view to trading them when the market improves, others have been forced to render them, while a growing percentage of sheep skins are being incinerated. This is costing in the region of €200/t or €3/head to €5/head.

One senior industry source conceded to the Irish Farmers Journal that finding an outlet for sheep skins was proving extremely difficult as they were “practically worthless”.

Farrell was contacted by two processors last week that were struggling to get skins rendered and were on the cusp of closing down operations as a consequence.

“Several rendering plants have recently announced that, due to a significant decline in demand, they are no longer able to find a market for sheep skins,” said ICSA sheep chair Willie Shaw.

“As a result, some processors – especially smaller ones – have been left without a cost-effective way to dispose of the skins, which is certain to have knock-on effects for sheep farmers,” he added.

“If a solution isn’t found, these costs will ultimately be passed down to sheep farmers,” Shaw said.

It has called on the Minister for Agriculture Charlie McConalogue and the Department of Agriculture to engage with the industry to find a solution to the what Shaw said was a “looming crisis”.

China is the main outlet for Irish sheep skins.