Joe Flaherty (Longford-Westmeath, Fianna Fail) | Oireachtas source

I welcome this opportunity to discuss the state of the sheep sector. I had hoped the Minister could have used today's slot to announce additional supports for the sector. Notwithstanding that, I welcome his commitment that his Department is continuing to investigate what additional supports can be made available to support the sector. I stress, though, to the Minister and the Department that we cannot delay any longer in providing additional supports as this sector is genuinely struggling. I appreciate there may have been an argument that the Minister wanted to wait until any benefits could accrue from seasonal price increases as a result of religious festivities running over this month, but I feel the prices we have now have effectively bottomed out. They have peaked now at a level that is significantly down on the prices available last year and will certainly not return to any comparable level.

This point was put to us forcefully yesterday by Dermot Kelleher, the president of the Irish Cattle and Sheep Farmers Association, ICSA, and other members. Also included was Councillor Paraic Brady, from Longford, who accompanied them to the Dáil yesterday. They emphasised forcefully that the sector really is struggling, and this has also been eloquently emphasised by my colleague, Deputy Dillon. I also met with several sheep farmers in Longford. This sector is a key component in the farmer ecosystem in County Longford, with many small and marginal operators. The reality is all these people are struggling on the back of several months of sustained and record low prices. I recently met many of these farmers and the local IFA representatives, including Luke Casey, chair of the Longford IFA committee, on the farm of Gavin White. They emphasised that the sector simply will not survive without a timely intervention from the Department. The reality is they cannot sustain their businesses, invariably in all cases family businesses, on a measly €7 return per lamb.

All of this comes against a backdrop of uncertain market conditions and soaring production costs. Many of these small farmers emphasised these concerns when the Minister spoke to them at a public meeting in Longford in recent weeks. He saw there the passion and enthusiasm in this sector, but the reality is this is starting to wane. The sector is facing a perfect storm now, with a decreased demand for sheep meat due to the cost-of-living crisis in our main export markets, most notably in France. I accept there have been some modest price improvements in recent weeks, as referred to, on the back of the Ramadan market. We are, though, still well down on the prices from this time last year and we are almost certainly unlikely to obtain those prices again any time soon. Increasing competition is also posing a challenge, with a recent recovery in the UK sheep meat sector, as well as more products entering Europe from New Zealand and other southern hemisphere producers.

I appreciate, as the Minister correctly outlined in his opening address, that sheep farmers can access the sheep improvement scheme and also the targeted agricultural modernisation scheme. Obviously many sheep farmers will access ACRES and can also apply to the fodder scheme. However, ultimately this sector needs a dedicated support package similar to what was afforded to the pig sector towards the back end of last year. We are very proud of the fact that Ireland is the fourth largest meat exporter in the world, and the second largest exporter of sheep meat in the EU. It is a position we attained on the back of several generations of hard graft and solid family farming. It is a global standing we should not take lightly and in fact it is an international standing we should cherish and applaud. Irish sheep and meat exports last year were valued at €475 million, an increase of 17% on 2021.

I am glad to see some progress being made on sheep wool. I welcome the establishment of the Wool Council and I know it had its first meeting just before Christmas. I ask that the Minister that the Department put some courage and conviction behind the Wool Council. It is critical for the sector that we get a viable market for wool. At the minute, wool is effectively worthless. Farmers tell us they have stored the wool on their lands and in sheds and have risked losing their farm payments because it is regarded as offal if left too long on the farm. We need to get a viable option and an alternative for farmers, be that clothing, or - probably one of most salient and exciting proposals for wool - as a fertiliser by-product. We need, as a Government, to put our money where our mouth is and put investment into the sheep sector and into the wool sector specifically to see what products we can develop be that insulation for homes in the teeth of a major cost of energy crisis.

The message is very clear from the sheep farmers of not only Longford but indeed every county across the country which has a strong and a family-backed sheep sector. The reality is that the sector is facing a crisis and it is desperately appealing to us, but more importantly the Minister and his Department, for timely support and intervention.

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