More than a thousand sheep farmers have dropped out of the business in the past year, according to figures released yesterday by Teagasc, the agriculture and food development authority.
Mr Gerry Scully, Teagasc's chief sheep adviser, said that 34,900 farmers had applied for the sheep premium this year, a drop of 1,100 on the 2002 figure.
The national breeding flock of ewes peaked in 1992 when 53,000 sheep farmers were claiming for 53,000 ewes. Total applications for the EU sheep premium in January this year were 3.891 million compared with 3.882 million in 2002, an increase of 4,000.
"The average flock size is now 111. In the late 1980s, the average was 65 ewes per flock," said Mr Scully.
The application details show an increase in sheep numbers in nine counties - Donegal, Kerry, Leitrim, Meath, Monaghan, Offaly, Sligo, Tipperary and Wicklow. In Kildare, numbers have remained at last year's level.
In the case of Louth, numbers have increased from 39,000 last year to 46,000 this year, as restocking in the Cooley Peninsula continues. The total flock in Louth was more than 60,000 before the foot-and-mouth outbreak and depopulation in 2001.
In all other 15 counties, numbers this year are slightly down on last year's level.
Mr Scully said the fixed ewe premium had taken a lot of the guesswork and distraction out of the industry. "Farmers respond if an enterprise is giving a reasonable return. The challenge now is to consolidate the industry. Teagasc is continuing to target labour and flock performance as the two key factors affecting the future viability of the sheep sector," he said.
Sheep farmers in Ireland have experienced an increase in the prices they have been receiving since the foot-and-mouth outbreak because so many animals had to be destroyed in Britain.
However, over the last year flocks are building up again in Britain and despite the strength of Sterling, British lamb has started to replace the Irish product in France, Ireland's main market.