Joe Walsh
Question:266 Mr. J. Walsh asked the Minister for Agriculture, Food and Forestry the total loss to sheep farmers due to the cut of £6.60 in ewe premia; and the steps, if any, he will take to restore the full premium. [6917/97]
Written Answers. - Ewe Premia.
The level of ewe premium in any year is determined by the average prices paid in the EU market for that year. During 1996, both the EU and Irish market prices for lamb were at record levels from March onwards, due to buoyant consumer demand. Irish lamb producers who sold their lambs in 1996 benefited from prices about 21 per cent better than those available in the previous year. The premium is designed to compensate producers for poor market returns and so in a year of good prices the premium paid is inevitably lower. Overall, however, the combination of market prices and premium in 1996 resulted in a significant improvement in returns to producers compared to 1995.