An independent TD has claimed that factories are engaged in a "prolonged attempt" to force "unacceptably low prices" on sheep farmers.
Offaly TD Carol Nolan said that she has been contacted by both individual farmers and farmer representative bodies in relation to lamb and hogget prices.
“There is unanimous agreement among those who have come to me that the factories are attempting to exert significant industry-wide pressure on sheep famers to accept reduced prices,” she said.
The TD also claimed that the price reductions have been happening since early March, "well ahead of lambing season in order to give cover to what is clearly a pre-determined attempt to squeeze sheep farmers on prices".
“What I am hearing quite clearly however is that sheep farmers are not prepared to take this kind of concerted action against them lying down.
"I am calling on the factories to engage in good faith and pay what is required for top class product," she added.
Last week, the sheep trade saw factory price cuts to both spring lambs and hoggets as the cull ewe trade remained strong.
Some outlets had cut up to 50c/kg from their official price quotes for spring lambs and cull ewes since the previous Monday (April 14).
Despite these price cuts to lambs, cull ewe prices have managed to increase at some outlets for this week with farmers telling Agriland up to €6/kg is available for cull ewes of certain carcass specifications this week.
The top prices farmers told Agriland were available for lambs and hoggets last week were €9.50/kg and €9.20/kg respectively.
Easter is traditionally a peak season for spring lamb demand and the sheep trade price cuts have come following the end of the Easter celebrations.
There is some level of confidence prices could pick up again in advance of the Muslim festival of Eid al Adha in early June.