Tim Lombard (Fine Gael) | Oireachtas source

This is a really important debate. We are talking about an amazing industry that has many strong links to every parish in rural Ireland.There are nearly 50,000 sheep farmers in Ireland, which means that 50,000 families are involved in the sector. It is a massive entity and a huge industry, with many layers that need to be considered. I acknowledge the work of the Minister and the IFA and the ICSA, members of which are in the Chamber to listen to the debate. The latter shows the interest among the farming public in this key issue.

The sheep sector is in a crisis situation in regard to prices. Colleagues have referred to the new Irish-grown wool council and various trade missions. The real issue for sheep farmers is what is happening at present. I am a farmer but not in the sheep sector. I know there is exceptional financial pressure on these families at this time. The figures we were given at the committee a few weeks ago were frightening, with reference to a profit of €7 per ewe. The majority of these holdings have fewer than 100 ewes, which means a profit of approximately €700. That is a tiny amount on which families must survive.

The key is what happens in the next few weeks and months. There are initiatives to increase our local consumption from 15% upwards, international trade missions and changes to the Common Agricultural Policy, CAP. These are all really important but the key is what we do in the short time from now until next June and July. As the Minister knows, the industry has been subject to a double-barrel effect. We had a scenario in which prices collapsed. They have increased in the past few weeks but they went down dramatically before then. The other big issue is the input costs for these poor farmers, which have been just crazy. Unlike other sectors, including beef and dairy, commodity prices went the other way when costs went up. While prices for beef and milk increased, it was the exact opposite for the sheep industry. It was a bizarre phenomenon and it put the sector in a financial crisis straight away because of the double-whammy effect. The key issue is how to deal with that in the short time that is available to address it.

I am genuinely concerned about how we are going to ensure the industry survives the next few months. There must be a pathway to ensuring that by next September and October, the majority of these 50,000 farmers are still in the industry. We need a viable sheep industry. Traditionally, sheep farming took place in areas where there was poorer land. There could be land abandonment if we do not have a sheep industry to protect the environment. We often talk about environmentally friendly farming. The sheep industry is exactly the type of environmentally friendly farming we are seeking to promote. In addition, the spend from these farmers into rural communities is significant. The real driver must be to find a way to keep that entire circle going. As I said, I am genuinely concerned about where this is going. The big question is how to move it forward.

Other speakers mentioned the Irish-grown wool council and the potential for milking sheep, which was a really good proposal that was brought to the committee. There are significant challenges with both and there probably is merit in both arguments on the long-term footing. Wool, unfortunately, is nearly worthless. Sheep must be sheared at least once a year but the value of their wool is as good as nil at this stage. Shearing is probably now a cost on the industry. The question of how we deal with that will be an issue for the long term.

On the proposal for a milking industry based around sheep, the reality is that some if not all sheep farmers are part-time and have other jobs. They might not have the capability or time to engage in milking into the future. The main consideration must be how we can protect these part-time operations in order that they have enough farm income to make them viable.

As the Minister is aware, there was a significant issue this time last year within the pig industry. I acknowledge that he moved quite swiftly to put in place a substantial package to address it. Slowly but surely, that industry has turned a corner. The Minister acted to ensure its viability. A package like that is required to ensure the viability of the sheep sector in the short term. The Minister's intervention in the pig industry ensured that industry is still alive today. We need something similar to ensure our sheep industry has the same capability. This is an issue that must be taken to the Cabinet very soon. The input costs over the past three month have left these farmers with significant merchant debt. They are not getting the price for their carcases that they deserve and the knock-on implication is that they will be in a negative scenario by the time they pay interest and everything else.

This is a ball that is rolling down the hill. The significant issue is how we deal with it. This debate is really important because it gives public representatives the opportunity to express their views on how we can move the situation forward. I hope we can get movement and an all-of-government approach to ensure the funding mechanisms that are required are put in place in order that the industry can get over the unfortunate situation it is in, which is a perfect storm of low commodity prices and high input costs. This is unique in the agricultural sector. How we deal with it in the next few weeks will determine the survival of the sheep industry into the future.