Lamb Prices Too Low - Farming | farming news | cattle prices | ifa

Lamb Prices Too Low

Written by Cian MacSweeny
Monday, 30 June 2008
Henry Burns, IFA Sheep Committee Chairman has said that lamb supplies at the factories are tight and are projected to be back 250,000 head on last years’ levels for the rest of the year. Mr. Burns said this will be a critical period for lamb prices and the future of the Irish sheep sector. The IFA Sheep Committee Chairman said the factories have threatened to push lamb prices down past break-even levels. He said, “Sheep farmers simply cannot afford to sell lambs at less than €4.35/kg. This is the minimum break-even price and if factories go below this price they are in effect robbing some of the farmers’ single farm payment." Henry Burns has addressed the producers asking them to strongly resist any move by the factories to pull prices. Mr. Burns said factories are quoting €4.00/kg to €4.06/kg and having to pay €4.20 to €4.30/kg to get lambs. According to the IFA Sheep Committee Chairman, the factories are using scare tactics by threatening to pull prices further because of scarce supplies. Henry Burns says the scarcity exists because the lamb kill is back 8,000 – 9,000 head per eek since early April. With last years ewe numbers back 260,000 head and the lamb kill at this early stage down 80,000 head, there will be a serious scarcity in lamb supply for the rest of the year with numbers expected to tighten by another 250,000 head on last years numbers. Henry Burns says this will keep lamb supplies short throughout 2008. The IFA sheep farmers' leader called on farmers not to give in to the price pressure from factories and urged them not sell under finished lambs. He added that costs have increased immensely this year. In comparison to this time last year, fertilizer costs have increased by 70%, feed costs are up 37%, fuel costs are up 65%, contractor charges have gone up by 25% and fixed costs are up at least 8%. On reviewing the 2007 National Farm Survey data, Henry Burns said costs have gone up by almost €15/ewe or €11 per lamb. This means farmers have to obtain at least 55c/kg more for lamb this year just to break even. Mr. Burns concluded saying that figures recently presented by Professor Frank Crosby from UCD state that farmers need at least €4.35/kg just to stand still in 2008.

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