During the Sheep Ireland Industry Meeting, speakers highlighted the latest research to be included in the National Sheep Breeding Improvement Programme’s 2026 Genetic evaluation and €urostars rating.
Dr. Edel O’Connor (Teagasc) presented the research behind the updated Economic Values which will be included in the Terminal and Replacement indexes for 2026.
Why update economic values?
Production costs and lamb prices have changed significantly in recent years and the underlying bio‑economic model which generates the economic values needed updates to stay accurate and reflective of modern-day sheep farming.
How the Model Works?
The Teagasc Lamb Production Model is a simulation of a sheep farm which determines the effect of system changes on profitability. It is a whole‑farm model and simulates a 12‑month production cycle beginning at mating, validated against Teagasc e-profit monitor flocks.
What was updated?
The model was updated to reflect a more modern production system including variable costs. These costs were updated in line with Teagasc Dairy and Beef models along with Sheep specific costs such as:
- Opportunity cost of land
- Concentrates – lamb
- Concentrates – ewes
- Lamb price
This ensures the model better reflects the true cost structure farmers face today.
Economic values were recalculated for key traits within in the indexes
Economic values for each trait were determined by modelling a one-unit increase in that trait while keeping others constant and comparing net profits before and after the change. For instance, increasing the Number of Lambs Born boosts revenue but also raises costs, such as feeding and health. The model calculated the updated economic value by weighing the additional income against these costs to estimate the trait’s impact on net profit.
Overall, Economic values have increased to more accurately capture what drives profitability on modern sheep farms. These updated values will be included in the Terminal and Replacement indexes in 2026.
Click below to view Dr. Edel O’Connor’s presentation:
