Written answers

Tuesday, 17 May 2005

Department of Agriculture and Food

Sheepmeat Sector

9:00 pm

Photo of Michael LowryMichael Lowry (Tipperary North, Independent)
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Question 250: To ask the Minister for Agriculture and Food her views on the crisis (details supplied) facing sheep farmers; and if she will make a statement on the matter. [16197/05]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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As the Deputy will be aware, the fall in prices for new season lamb, during mid to late April 2005, led to protests by sheep farmers at meat export premises. I am glad to report that the dispute appears to have been resolved following discussions between farmers' representatives and the export plants.

The following table shows the average factory price for spring lamb for the month of April 2005:

Week No. Week Ending Average factory price* for spring lamb €/kg
14 09/04/2005 4.85
15 16/04/2005 4.21
16 23/04/2005 4.23
17 30/04/2005 4.31
*Amounts exclude the VAT refunds incorporated in prices paid to farmers.

The above information is based on returns from a number of representative factories which show a range of prices on offer. Throughout this period prices for hoggets and ewes held up well. Prices for spring lamb this year have been influenced mainly by demand on the French market, our key export outlet. In the same period referred to in the table above, the quoted price on the French market fell from €5 per kg to around €4.40 per kg as a result of sluggish demand there and competition from other suppliers. The early Easter this year hindered the development of the market for spring lamb. Also the price for skins dropped from €8 to €1.50 or the equivalent of some 40 c per kg compared with this time last year.

Bord Bia has commissioned a promotion of new season lamb on the Irish market, which commenced on 16 May and will extend to the end of June. It will also be undertaking a campaign on the French market over the coming months aimed at maintaining and increasing market share for Irish lamb there. Initiatives such as these play an important role in maintaining and developing markets at home and abroad for Irish lamb, thereby supporting prices paid to suppliers. Whereas my Department is concerned that farmers receive a fair price for their produce, it has no function in the determination of market prices.

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