ICSA: Current sheep prices 'hard to stomach'
The Irish Cattle and Sheep Farmers' Association (ICSA) has said that farmers are "furious" at the current prices being offered from factories and given that some prices are below prices for the same period last year, farmers are finding that reality "hard to stomach".
ICSA Sheep Committee chair, Willie Shaw has said the continued collapse in prices defies the reality of drastically reduced sheep numbers.
“This time last year hoggets were making in excess of €9.00/kg, but this week farmers are barely getting €8.00/kg. That is a staggering difference and one that is hard to stomach,” he said.
Shaw said that what makes the situation even more "infuriating" is that prices should be moving in the opposite direction: “Costs are rising every year due to inflation, so even if prices stood still, farmers would be worse off in real terms.
"But this situation is far worse than prices standing still. We are seeing a major backward step that simply cannot be justified.
“What makes this even harder to understand is that farmers in other countries are being paid significantly more."
The ICSA chair said that in the UK prices are over €8/kg; in France they are close to €10/kg; and in Spain they are approaching €11/kg.
"Irish sheep farmers are being left behind, and nobody is explaining why,” he continued.
“Sheep throughput was down by around 20% last year, or approximately 600,000 sheep. In any functioning market, that level of reduced supply should be sending prices higher, not seeing them cut.
"Yet processors continue to defy basic supply and demand logic, with no clear explanation for how prices can fall so sharply when numbers are down.”
Shaw said this will have serious consequences and will result in the speeding up of the exit of farmers from the sheep sector.
"You cannot expect farmers to stay when fairness and economic reality are being ignored," he said.
Sheep trade warning
Meanwhile, earlier this week sheep trade saw a 10c/kg lift for hogget price, but processors voiced concerns regarding over-heavy carcasses being presented for slaughter.
"A lamb in the field is as good as gold but a lamb in the chills must be sold" was the message from one factory, reminding farmers 23kg is the maximum carcass-weight and that farmers should keep lambs drafted for slaughter as they come fit.
One processor explained that many customers are not interested in overheavy or overfat lambs.
