Mr. John Lynskey:

Across the board, the impression has been given that sheep farming is the poor relation, which is absolutely correct. Once that is realised, we can move on. We need our fair share of the supports. This is why we want to ensure the sector, the poor relation, get its fair share of the supports available to maintain it. In 2002, when we were down at around 1.2 million ewes, the IFA fought a battle for the sheep grassland scheme, which was introduced in 2008. It was not a huge payment but enough to grow numbers to 2.5 million ewes. The numbers stabilised over several years and, over the past two years, lamb prices have been reasonably stable. However, ewe numbers have dropped.

We see a drop because this payment has slipped from being a targeted support for sheep into the CAP payment. This is where we are at and why we are here looking for support to get a fair share to maintain sheep numbers, maintain meat factories around the country and maintain the markets mentioned. Therefore, it is vital that a support is available to maintain the numbers. We do not believe there is any basis for the fear of overgrazing and of driving numbers to the highs of the late 1990s if the support is targeted correctly to the sector to support productive farmers willing to do a good job, producing lamb. There is a market deficit in Europe. Reference was made to the increase in sheep numbers in the UK. The UK can consume the exact amount of lamb it produces, but it imports a cheaper New Zealand lamb and exports some of its own. That is the position. Sheep numbers are falling right across Europe, so the prospects are there of a market for our lamb.

We have pointed out that full electronic identification, EID, across the board would cost sheep farmers in the region of €2 million or €2.2 million per year without any noticeable benefits to them. In our discussions with the Department on the matter, it said there is no issue on traceability where lambs go direct to slaughter from the original farm where the lamb is produced. The Department does not have a problem with that position and we are looking for the derogation to continue. In the case of light hill store lambs, which are sold for approximately €25 to €50 per head, placing a tag costing in the region of €1.40 to €1.60 per head is an excessive charge for the sector. Work needs to be done to ensure fair play for all lamb producers.