Sheep Farming in Ireland: Navigating Change and Embracing Opportunities

Introduction

Sheep farming remains one of the most recognisable parts of Irish agriculture. From the hills of Donegal and Mayo to the uplands of Wicklow, Kerry, and Galway, sheep farming has shaped rural Ireland for generations. In many parts of the country, particularly western and upland regions, it remains one of the few practical farming systems available.

But while the sector remains deeply important economically, socially, and environmentally, Irish sheep farming is also undergoing significant change. Flock numbers are falling, farmers are ageing, costs remain high, and the structure of the industry is becoming increasingly concentrated.

At the same time, strong export demand and improving prices are creating opportunities for efficient producers.

Sheep Farming Still Supports Thousands of Irish Farm Families

According to Teagasc, the Irish sheep sector supports more than 34,000 farm families. Sheep farming is particularly important in; western counties, upland areas, and regions with more marginal land unsuitable for intensive dairy or tillage farming. Counties including: Mayo, Galway, Donegal, Kerry, Clare, and Wicklow continue to maintain some of the country’s highest sheep populations.

Ireland’s Sheep Population Continues To Decline

CSO figures show that Ireland had approximately 5.1 million sheep in June 2025. This represented a decline of 77,200 sheep (-1.5%) compared with 2024.
The number of breeding sheep also declined by: 2.7% year-on-year.

The West region alone accounted for:

• More than 1.4 million sheep, making it the largest sheep-producing region in the country.

These figures continue a longer-term trend of gradual decline in sheep numbers nationally.

Irish Sheep Farming Is Highly Export-Oriented

Ireland produces far more sheep meat than the domestic market consumes. Teagasc estimates that:

• Over 80% of Irish sheepmeat production was exported in 2024.

Bord Bia figures show:

• Sheepmeat exports were worth approximately €400 million in 2024.
• With export volumes reaching around 56,000 tonnes.

Irish lamb is exported primarily to:

• France.
• The UK.
• Germany.
• Belgium
• And Switzerland.

France remains the single largest export market, accounting for approximately:

• 30% of Irish lamb exports.
  

This means the Irish sheep sector is highly dependent on:

• International markets.
• European consumer demand.
• Exchange rates.
• And wider trade conditions.

Lamb Prices Have Improved — But Pressure Remains

One of the more positive developments for sheep farmers in recent years has been stronger lamb prices. Teagasc estimated that:

• Average sheep farm income reached approximately €36,500 in 2025.
• Representing an estimated increase of around 33% compared with 2024.

This improvement was largely driven by:

• Reduced sheep supplies across Europe.
• Stronger market prices.
• And lower production volumes.

However, profitability within the sector remains highly sensitive to:

• Feed costs.
• Fertiliser prices.
• Weather conditions.
• And overall input inflation.

For many smaller sheep farms, income volatility remains a major challenge.

Production Volumes Have Fallen Sharply

Although prices improved, sheep production volumes declined significantly during 2025. Teagasc reported that:

• Sheep throughput through Irish meat processors fell by approximately 17% in 2025.

Meanwhile, the IFA Sheep Council stated that by mid-2025:

• Total sheep throughput was running 16% below 2024 levels.
• Hogget throughput was down 16%.
• While ewe and ram throughput had fallen by 30% year-on-year.

This tightening supply helped support stronger prices, but it also reflected the continuing contraction within the sector.

Sheep Farming Plays a Major Role in Landscape Management

Sheep farming remains critically important beyond food production alone. Large areas of; upland pasture, commonage, and semi-natural grassland
are actively maintained through sheep grazing.

Without grazing activity, many of these landscapes would gradually:

• Scrub over.
• Lose open habitat structure.
• And undergo major ecological change.

At the same time, environmental concerns remain part of the discussion around the sector. Issues including:

• Overgrazing.
• Biodiversity protection.
• Peatland management.
• And agricultural emissions.

These have all become increasingly important within agricultural policy debates. The challenge for policymakers is balancing:

• Environmental protection.
• Sustainable land management.
• And viable farm incomes.

Farmers Are Getting Older — And Succession Is Becoming More Difficult

Like much of Irish agriculture, sheep farming faces growing demographic pressure. According to the CSO the average age of Irish farmers is now approximately 59.4 years old.

Many younger people remain reluctant to enter sheep farming because:

• Workloads can be physically demanding.
• Returns are often modest compared with other agricultural sectors.
• And income can fluctuate significantly from year to year.

This is particularly true in hill sheep systems operating on:

• Fragmented land.
• Difficult terrain.
• And lower stocking densities.

As older farmers retire, many flocks are:

• Reduced.
• Leased out.
• Or disappearing altogether.

Technology Is Slowly Changing the Sector

Despite its traditional image, sheep farming is becoming increasingly technology-driven. Irish sheep farmers are adopting:

• Electronic identification (EID).
• Flock performance recording.
• Precision weighing.
• And digital animal health systems.

Teagasc’s Sheep Road Map 2030 strategy has also set ambitious targets around:

• Improving flock productivity.
• Increasing efficiency.
• And improving profitability within lowland sheep systems.

The sector is gradually becoming more data-driven and performance-focused, particularly among larger commercial producers.

The Future of Sheep Farming in Ireland

Irish sheep farming is unlikely to disappear. In many upland and western areas, it remains one of the few realistic agricultural enterprises available.

However, the sector is clearly evolving. The future will likely involve:

• Fewer but larger flocks.
• Greater use of technology.
• Stronger environmental requirements.
• And continued consolidation across the industry.

At the same time, global demand for grass-fed, traceable lamb remains relatively strong, particularly in European markets.

That creates opportunities for Irish producers who can remain efficient and competitive.

Conclusion

Sheep farming remains one of the foundations of rural Ireland. It supports thousands of farm families, contributes hundreds of millions of euro in exports, and plays a major role in managing some of Ireland’s most environmentally important landscapes.

But the sector is also under pressure from:

• Falling flock numbers.
• Rising costs.
• Demographic change.
• And ongoing structural consolidation.

The challenge now is ensuring sheep farming remains economically viable enough to survive long-term, particularly in the regions where it remains most important. Because in many parts of rural Ireland, sheep farming is not simply an agricultural enterprise.

It is part of the social, economic, and environmental fabric of the countryside itself.

*By Anne Hayden MSc., Founder, The Informed Farmer Consultancy.