Factory price cuts of around 50c/kg this week and indications of a further 20c/kg cut next week, will wipe almost €15 off the value of every lamb in under a fortnight, Irish Cattle and Sheep Farmers’ Association (ICSA) sheep chair Willie Shaw has said.
Shaw said no business could survive when that level of value disappeared off every lamb in such a short period of time – with no fair or reasonable explanation.
There was no obvious justification for the initial cuts or for the further signalled reduction, as throughput was well back on where it would normally be at this stage of the season, he added.
It was very difficult to understand why factories have moved so aggressively, he said.
Huge uncertainty
Shaw highlighted the uncertainty that sheep farmers were now facing around what they would be paid from one week to the next.
This was compounded by continuing high input costs such as feed, fertiliser and transport.
“Farmers put months of work into producing quality lambs. They cannot simply switch production on and off depending on what factories decide to pay in any given week,” Shaw said.
"If supplies remain tight, prices should reflect that. It is as simple as that.
"We highlighted the fact that sheep farmers cannot survive on one good month.
“Unfortunately, that is exactly what is happening again. Just when farmers think they might finally be getting a return for a year's work, the price is knocked back.
“Farmers need some confidence that if they produce a quality product, they will get a fair and consistent return for it. It is this constant uncertainty that will ultimately drive people out of sheep farming,” he said.
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