IFA issue sheep sector warning

THE sheep sector will continue to decline unless the meat factories return a viable price to farmers for lamb, above the costs of production, the Irish Farmers Association has warned.

IFA Sheep Committee chairman Henry Burns said farmers are not going to subsidise lamb production by eroding their single farm payment.

He said sheep farmers need a price increase of €8 — €10 per lamb from the meat factories over 2006 price levels to stay in business.

With production costs for spring lamb running at €90 to €100 per head, he said the meat factories know and accept farmers cannot produce lambs at unviable prices below the costs of production.

He said the meat plants accept that lamb prices must rise in order to restore viability at farm level. The factories indicated they expect prices to stabilise for this month. Last year, lamb prices were in the order of €4.50/kg for most of May.

Mr Burns said all of the main retailers will complete the changeover to spring lamb this week and this should drive consumption and boost demand.

Mr Burns said there was a major level of responsibility on factories to stabilise the market and prices.

“Factories and agents talking down prices and trying to buy lamb cheaper are acting highly irresponsibly and inflicting further damage on an already difficult situation,” he said.