Positive signs for a sheep industry now worth €250m to economy

THE sheep industry is worth around €250 million to the national economy, with two thirds of the product being exported.

Agriculture Minister Brendan Smith described it last weekend as a vital farm enterprise, with over 30,000 committed flock owners producing a quality product for discerning consumers both at home and abroad.

He said he is committed to having a vibrant, sustainable sheep sector as an integral part of the overall agri-food sector.

“The value of the industry cannot be under-estimated and the sector is one that forms an essential part of the rural economy and one with a strong future,” he said.

Mr Smith said the recently launched grassland sheep scheme would deliver an extra €54 million to sheep farmers over the next three years which was a major boost to incomes.

Significant funding was also being provided to An Bord Bia and Sheep Ireland to help to improve farm profits.

“There is a renewed interest and confidence in sheep production this year, and farmers are more confident in the future which bodes well for the future of the industry,” he said.

IFA Sheep Committee chairman James Murphy said the renewed level of confidence in the sheep sector is positive.

However, he warned the meat factories that strong lamb prices are the key to profitability and recovery at farm level.

He said price cuts of 50c/kg or €10 per lamb witnessed over the last week sends a very wrong signal to producers.

Mr Murphy said in order for the sheep sector to recover and regrow after a decade of contraction, profitability mustbe restored at farm level.

A number of market factors are positive for the factories to return profitable prices to producers this year. Lamb supplies are back over 165,000 head and will remain very scarce.

With Ramadan commencing as early as August 11 this year, live exports will be strong and in excess of the 90,000 head shipped last year.

Mr Murphy said the strength of sterling gives Irish factories a major competitive advantage over the British on the French market.

Trade in store lambs and breeding sheep will also be strong.