Irish sheep supply declines sharply, yet prices come under pressure

The Irish Cattle and Sheep Farmers Association (ICSA) has raised concerns over the current pricing trends in the sheep industry, highlighting a significant drop in supply while prices continue to be slashed. This situation, according to the ICSA, is undermining the viability of sheep farming in Ireland.

Supply Concerns

The ICSA has reported a dramatic reduction in sheep throughput, with figures from the Department of Agriculture indicating that only 36,643 sheep were slaughtered in the last week. This represents a decrease of 1,588 from the previous week and nearly 11,000 fewer than the same period last year. Over the past 18 months, the sector has seen a reduction of over 600,000 sheep processed, as many farmers are either cutting back or exiting the industry entirely.

Price Discrepancies

Despite the significant drop in supply, Irish processors are reportedly continuing to cut prices. Willie Shaw, ICSA Sheep Chair, expressed disbelief at the current market dynamics, noting that farmers in France and Spain are receiving up to EUR 1.40/kg more for their sheep. Shaw emphasised that the situation is unprecedented, with beef prices now surpassing those of lamb, which traditionally held a premium due to its seasonal nature and lighter carcass.

Market Implications

The current pricing strategy is seen as unsustainable by the ICSA, with Shaw warning that the sheep sector is reaching a critical tipping point. The association is urging policymakers and processors to recognise the value of the sector and the intensive labor involved in sheep farming. Without intervention, the ICSA fears that the industry could face further decline, impacting both the domestic market and Ireland's position in the global meat industry.

In conclusion, the ICSA's call to action highlights the urgent need for a reassessment of pricing strategies to ensure the sustainability of sheep farming in Ireland. As the sector faces mounting challenges, stakeholders must collaborate to address these issues before it is too late.

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