The IFA has said that the cuts applied by sheep factories to hogget prices are "unnecessary and highly irresponsible".
Store finishers have incurred their costs in producing these hoggets for factories, IFA sheep chair Adrian Gallagher argued.
This, he added, gives the factories a consistent supply of sheep meat for their key customers, but their reckless behaviour is decimating their returns.
“Store finishers are now a key part of the sector, providing a vital outlet for hill sheep farmers and maintaining a year-round supply of sheep meat. We are all acutely aware of the contraction in sheep numbers and the broader concerns for the longer- term viability of the sector if the decline continues,” he said.
Gallagher said this latest attempt at undermining the confidence of farmers risks huge knock-on impacts for store finishers and hill sheep producers.
Factories "can and must do more" in the marketplace to maintain sustainable prices for sheep farmers and reverse these price cuts, he said.
Meanwhile, the Irish Cattle and Sheep Association (ICSA) said that this week’s hogget price cuts of 50c/kg are a “crippling blow” to farmers.
This, ICSA sheep chair Willie Shaw said, equates to a drop of over €11 on a typical 23kg carcase.
“Compared to this time last year, prices are down by €2/kg and the carcase weight paid has dropped from 24.5kg to 23kg. That means farmers are currently receiving just €172.50/head (23kg x €7.50/kg), compared to €232.75 (24.5kg x €9.50/kg) last year which is a staggering difference of over €60/head,” he said.
Sheep farmers cannot continue to absorb these kinds of losses while input costs have soared across the board, Shaw argued.
“It is no longer a case of tightening the belt, it’s a case of not being able to survive. There is simply no margin left,” he added.
Shaw said making matters worse is the fact that processors are continuing to ramp up imports, compounding the pressure on local producers. “Based on CSO figures for January and February of this year, we are looking at total imports rising to over 10,200 tonnes for 2025 - that is six hundred tonnes more than last year, with the bulk of that increase coming in carcase form. It’s clear that processors are using carcase imports to make up for shortfalls caused by restrictions on live imports, and in doing so, are keeping a lid on prices and undermining Irish suppliers.”
“We need full transparency across the food chain now more than ever, as it is the only way to give farmers a fighting chance. We must ensure that the Agri-Food Regulator has all the necessary powers to compel cooperation from processors and retailers and to strip away the smoke and mirrors that allow the big players to hide their margins and spin their import strategies,” he said.
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