Dáil Éireann debate -
Thursday, 26 Feb 1998

Vol. 487 No. 8

Written Answers. - Sheep Farmers' Income.

Michael Bell

Question:

49 Mr. Bell asked the Minister for Agriculture and Food if his attention has been drawn to the severe income drop experienced by hill sheep farmers due to the severe reduction in live premiums; the way in which he will respond to this crisis; and if he will make a statement on the matter. [5154/98]

Minister for Agriculture and Food (Mr. Walsh)

While prices over the past two years in the sheep sector generally have been at record levels, it is the case that in recent months, prices for hoggets and cull ewes have been relatively low. This is due to a large extent on the overhang of lamb in the market and in particular the UK.

The ewe premium is designed to compensate producers for the difference between the EU basic price and the average EU market price for sheepmeat. In view of this, it is inevitable that the rate of the ewe premium will be low in a year such as 1997, when average market prices are high. Unfortunately, the ewe premium is not capable of compensating individual producers or categories of producers for lower than the average price.

The EU sheepmeat regime recognises the position of the hill sheep farmer through the payment of a supplementary rural world premium of £5.51 on eligible ewes to producers in disadvantaged areas, where all hill sheep farmers are located. In addition, these producers also received a headage payment of £10 per head on the first 200 eweshoggets under the disadvantaged area scheme. Towards the end of 1997 I sanctioned an additional £2.5 million in extra headage payments to assist sheep producers in disadvantaged areas. These supplementary payments are assigned to compensate hill sheep farmers for the lower prices they receive on the market.

I have established a forum, representative of the industry as a whole to examine the wider challenges facing the sector including the production and marketing patterns best suited to our conditions.