Price agreement slumps

It has been another difficult week for lamb producers during which they have seen a melt-down of the prices agreed to resolve their recent protest at factories.

A base price of 406 cents/kg (145p/lb) was quoted by factories towards the end of last week, down from the 475 cents/kg in the agreement which secured the lifting of the farmer protest at factories and carried through to the start of this week.

But the collapse of the agreed price had been signalled for a few days in advance by processors, who complained that it was not sustainable at current market returns for lamb and for hides. Meat Industry Ireland, representing processors, argued that the industry could not continue to subsidise the price being paid to sheep farmers. On top of the weak sheepmeat markets, skin prices have dropped from €8.50 per piece to €1.40, which knocks €7 per head off lamb prices.