Despite rising input costs, a recent survey conducted as part of Ifac’s Irish Farm Report 2022 has revealed that half of sheep farmers have a positive outlook for the sheep farming sector. According to the data from the farming accountancy group, 2021 appeared to be an excellent year. In 2021, average sheep prices reached €6.67/kg, a 27% increase from 2020. At the same time, throughput decreased by 4% in 2021 compared to the previous year.
Ifac maintains that the main driving force behind the rise of sheep prices was the increased demand for lamb from export markets. In terms of the biggest challenges for the sheep farming sector, 70% of sheep farmers surveyed cited the cost of inputs, while 11% answered with environmental issues.
With strong prices remaining firm for 2022 the throughput of lambs in the first 9 weeks increased by 14%, with demand remaining steady. According to the report the increase may indicate a shift in lambing times, with more farmers opting to move to mid-season lambing. While current prices appear to be excellent, the “uncontrollable rise” in costs will quickly erode this gain, according to Ifac.
The group advises farmers to “sit down and plan for the year ahead”, saying they should aim to maximise thrive from grass, with extra focus on managing grazing. Grazed grass is still the cheapest option for sheep farmers, despite fertiliser issues, Ifac says. Farmers should also target an adequate amount of silage for the winter.
According to Ifac, the key areas for sheep farmers to focus on for 2022 can be summarised as follows:
- Budget timing and quantities to be sold
- Grazing infrastructure and grass quality
- Plan to produce good quality forage for security
- Assess stocking rate and lambing