IFA National Sheep Committee Chairman John Lynskey said the lamb price must be stabilised as sheep farmers cannot afford to take a base price below €5.00/kg.
He called on the factories to stop the price rot and said attempts to force the price below €5.00/kg is driving sheep farmers into loss-making territory. He said farmers are holding back and not prepared to move lamb at a base of less than €5.00/kg.
John Lynskey said that tighter supply numbers should help stabilise the trade.
He added that the store trade had kicked in with buyers active in the marts and this will also help stabilise the trade. He said grass supply is good and this will bring a new demand to the trade.
John Lynskey said preliminary figures from the sheep census and lambing this year would indicate that there will be no major increase in lamb supplies this year.