There has been a dramatic decline in the national sheep flock and a significant drop in the number of cattle being farmed as a result of changes in the Common Agricultural Policy.
Breaking the link between EU farm subsidies and production has seen livestock numbers drop across the union as farmers no longer have to keep specific numbers of animals to qualify for subsidies.
Figures published by the Central Statistics Office show that up to the end of 2006, there had been a 10.1 per cent decline in the national sheep flock.
In December 2005, there were 4.25 million sheep in the State but by December last this had fallen to 3.82 million, a drop of 430,700.
A breakdown shows a decline of 56,400 in the number of ewes under two years, 220,700 fewer ewes two years or older and a drop of 147,200 in what was termed "other sheep".
There was a 3 per cent decrease in cattle numbers, with the largest drop - 58,700 or 7.7 per cent - in male animals of 1-2 years old. Dairy heifers and males under one year fell by 15,800 - 6.7 per cent in the heifer numbers (15,800) and 5.7 per cent in males, (50,100).
A 10-year chart, showing cattle and sheep numbers from 1996, showed a 25 per cent decline in the sheep flock and a 15 per cent decline in cattle numbers.
Research into the impact of breaking the link between subsidies and production had predicted a decline in livestock numbers in the first years of Cap reform, but there has been concern in the sheep sector that numbers may fall below critical mass.
This would affect the processing sector which might have to import sheep from Britain.