Sheep and suckler cows/beef farmers incomes

Commodity watch by policy officer Kellie Rouse

Provisional figures recently released by DAERA have indicated that farm income has decreased by 44%, almost halved from £909 million in 2022 to £341 million in 2023 with further predictions suggesting a 46% decrease in farm incomes in 2024. Sheep and suckler/beef farmers' incomes are affected by volatile markets and rely heavily on the Basic Payment Scheme.

From the start of 2024, we have seen record high average lamb prices peaking so far this year at 812p/kg in the week ending 25/05/24. However, unfortunately only a small percentage of sheep farmers got to benefit from these record high prices. For the week ending 20/07/24 average lamb prices were back down at 559p/kg although lamb price dropping at this time year is no great surprise due to increased numbers coming out.

The timing of the Muslim festivals Ramadan and Eid al-Adha had significant impact on lamb prices this year and the shortage of lambs across UK and Europe also contributed. In ROI lamb prices have averaged around 588p/kg (€7/kg) over the last few weeks. In GB in the week ending 20/07/24, lamb prices averaged 647p/kg. In England this year, earlier lambing flocks were hit by Schmallenberg and the difficult spring weather has also contributed to a higher mortality rate.

Across Europe from 2022 to 2023, sheep numbers have declined by 3%. blue tongue also contributed to reduced sheep numbers in Europe and despite the blue tongue vaccine in Europe, we nervously await to see the outcome of blue tongue this summer. In NI from 2022 to 2023, there was 2% decrease in ewe numbers and 3% decrease in total sheep numbers.

Beef prices from the start of 2024 have remained constant with an average price paid of 467p/kg due to tighter supplies. In 2023 the average price paid for clean cattle was 460p/kg. In NI for the week ending 13/07/24, R3 steer average price paid was 477p/kg. In ROI in the same week, the average price paid for a R3 steer was 452p/kg (538c/kg). In GB the average price paid for an R3 steer was 487p/kg. Cattle numbers in NI have increased by less than 1%. Cattle numbers also decreased by 1% across Europe.

In NI the suckler cow scheme will start in 2025, suckler farmers will be rewarded by meeting reducing age of first calving and calving interval which will reduce greenhouse gas emissions. Beef farmers will also be supported to reduce age of slaughter to reduce greenhouse gas emissions. Although the targets set are challenging to achieve, they will help drive efficiencies on farm.

Across all countries the main issues in sheep and suckler/beef farming are the increased input costs, market volatility, lack of labor, disease outbreak, lack of young people joining the industry and imports. However sheep and suckler/beef farming are still extremely important industries in NI.

Firstly, the UFU and other sheep industry representatives remain committed to lobbying DAERA to introduce a sheep scheme to help support sheep farmers contribute to improving efficiencies and reduce greenhouse gas emissions. Secondly, the halal market continues to grow and despite lamb consumption not growing in the UK, it has increased around other parts of the world highlighting the importance of the lamb export market.

Sheep and suckler/beef farming is a lower cost start up compared to some other commodities, therefore, it is more appealing to young people to start up. Finally, sheep and suckler cow farming has an important role to play environmentally through the grazing of upland areas.