Farming News - Processors Crushing Sheep Farmers With Price Cuts And Imports
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Processors Crushing Sheep Farmers With Price Cuts And Imports
ICSA Sheep chair Willie Shaw has said sheep farmers have been dealt another crippling blow this week as factories have once again cut prices for hoggets, slashing a further 50c/kg off the price. "This equates to a drop of over €11 on a typical 23kg carcase - but that is not the full story. 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/hd (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/hd," he said.
"This kind of wipe-out is nothing short of disastrous. Sheep farmers cannot continue to absorb these kinds of losses while input costs have soared across the board. 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."
Mr 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."
Continuing, Mr Shaw said, "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.
The reality is that the lack of both price certainty and transparency is killing confidence in the sector. Without them, there is no future. The sheep sector is already struggling to attract a younger generation, and this kind of ongoing unfairness in pricing is just another nail in the coffin."