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Sheep 1
Present position of the Irish Sheep Industry
There is no doubt about the large numbers of farmers, costly lowland producers, who have apparently decided that there is not future in producing lambs for the export market at present prices. They are voting with their feet and leaving the sheep industry. There are 45,000 sheep farmers in this country. About 20,000 of those have less then 50 ewes. A further 10,000 farmers have between 50 and 100 ewes, which leaves about 15,000 farmers with over 100 ewes each. Roughly 7,000 of those producers live in the hills and are largely dependent on sheep for the major part of their income.
Low lamb prices, reducing ewe premiums, “on the floor” wool prices and give away prices for cast ewes, have all contributed to the decline of the sheep industry. The introduction of the Department of Agriculture regulations which demands the removal of the spinal cord from cast ewes slaughtered for the export market, has resulted in many exporters showing little if any interest, in slaughtering those cast ewes. They say that at present prices, it is just uneconomic for them to process those culled ewes. Hence, they are almost unsaleable, and are being sold at from £3 to £10 a head.
This is leaving the price of breeding ewes, on which the hill producer depends for much of his income, lower then they have been for the past five years. For instance in 1994, breeding ewes were selling from £80 to £100 each. This year they are making from £30 to £50 each. Lamb has also been badly hit. For example in the period 1984-1989, the selling price of lamb for mid-season animals, ranged from 101p per lb to 109p per lb and the ewe premium ranged from £13 to £20 a head. This year the price of lamb will be much lower down to 90p per lb in some cases but during the interval, the production costs have shown a considerable increase.
Last year 600 Irish sheep farmers left the industry. This year, this number could reach 1,000. This is further eroding the opportunities of the hill producer to find buyers for their breeding stock and making it more difficult for them to remain in business.
Sheep 2.
The proposed introduction of a National Identification system based on the tagging of ewes and lambs is also going to have serious implications for sheep producers. Many of them are one-man outfits and an increasing number of them are finding “off farm” employment, which further restricts the time, they have to spend with their sheep. In many cases, this is also the deciding factor as to whether they will remain with sheep or get out of them altogether.
The National Sheep Breeders Association, which is composed of the various pedigree Societies have watched with dismay, the apparent lack of interest which the European Union have shown in the plight of the sheep farmers, especially in this country. They have seen their incomes from the production of pedigree animal’s decline over the years and many of them have seen the “writing on the wall” and have sold their flocks.
A major problem appears to lie in the marketing of lamb. The prosperity of the industry depends on a steady home demand. This home demand is being seriously damaged by the higher margins which everyone connected with the industry appears determined to take. In spite of the steep drop in lamb prices, the consumer is still being asked to pay the same level of prices, as were being charged last March and April, when lamb prices were at their highest. Butchers, supermarkets, hotels and restaurants and other outlets are all taking too high a “mark-up”, while the producer watches everyone making money from his product but himself.
A sure sign that there is a major lack of confidence in the sheep industry can be seen from the fact that there are over 100,000 quota rights available from the National reserve. Those rights, which were once worth anything from £5 to £10 each, are now almost valueless.