Farming News - Sheep Farmers Take €32/head Hit As Processors Profit From Price And Weight Cuts

Sheep Farmers Take €32/head Hit As Processors Profit From Price And Weight Cuts

ICSA Sheep chair Willie Shaw has said that recent price and weight cuts are costing sheep farmers approximately €32.50 per hogget. "Those who committed to feeding hoggets to heavier weights on the understanding they would be paid for up to 24kg have been left high and dry. This is a massive blow, and if farmers continue to be treated this way, many will simply stop producing," he said.

 

Mr Shaw said processors have once again cynically moved the goalposts by cutting both the price and the paid carcase weight in one fell swoop. "Just a couple of weeks ago, farmers could expect €228 for a 24kg hogget at €9.50/kg. Now, with base quotes expected to drop to €8.50/kg by next week and the paid weight cut to 23kg, farmers will be down to €195.50 per hogget. That is a massive €32.50 hit per head in a matter of weeks, which is completely unsustainable.

 The reality is that while farmers are losing on the double - through reduced prices and weight limits - processors are gaining on the double. Processors are slashing prices while also getting their hands on extra free meat. Anything over 23kg is effectively taken for nothing, yet it can still be sold on in the normal way."

 To illustrate the point, Mr Shaw said that for every 100 hoggets sold at 24kg, farmers are losing 100kg of meat without payment, compounding the financial hit from the price cuts. "No beef farmer would accept being paid for 350kg on a 365kg carcass, and sheep farmers shouldn't have to accept these terms either. We have heard in recent weeks processors voicing their concern about declining ewe numbers and future supplies, but actions like these only drive more farmers out of production."

 Mr Shaw said he was calling on all sheep processors to reverse the recent cuts. "Farmers deserve a fair deal that reflects all the hard work and money they've put in, and it is time for processors to step up and do what is right for everyone in the supply chain. If this situation is not corrected in the coming weeks there will be nobody rushing to buy store lambs come the autumn."