Thousands of sheep farmers from the UK and abroad made North Sheep 2007 at North Hanging Wells, Eastgate, in Weardale, a huge success last week. Rural affairs editor Mike Bridgen reports.

SHEEP producers must work together to win a fair price for their product.

Hans Porksen, chairman of the National Sheep Association's (NSA) northern region, said they must collaborate with slaughterers and processors, and even New Zealand producers, to win a fair price.

Cheap imports from New Zealand have been blamed for depressing the market for English producers.

However, Mr Porksen said the supermarkets had forced the New Zealanders to sell their lamb at 25 per cent below the cost of production. He said: "It is an absolute disaster for them too. They too are stuffed by the people who set the price."

He urged producers to join organisations such as the NSA, the National Beef Association and National Farmers' Union, to fight for a better deal.

He said: "We must not be afraid to talk price and, more importantly, we must not be afraid to set the price."

No livestock farmer could currently make commercial farming pay without the single farm payment (sfp), he said.

On his own farm, without sfp, he would need a minimum £70 for an April-born 20kg prime lamb, finished off grass; £90 for a mule ewe lamb; and £140 for a mule shearling gimmer.

Peter Morris, chief executive of the NSA, said there was a need for meaningful dialogue with New Zealand producers.

For the first time, he said, they were not making money by exporting to the UK because supermarkets had forced their prices down as they do at home.

He said Tesco and Sainsbury's in particular had brought in increasing amounts of chilled New Zealand lamb in direct competition with home-grown produce, using volume to tempt processors into price wars.

Mr Morris said: "The upshot is that those retailers are able to turn the screw in New Zealand as tightly as they continue to turn it in the UK."

The situation was ridiculous, particularly when UK and New Zealand producers have 90 per cent of consumption but allow themselves to be played off against each other.

He said: "Is it beyond the wit of all of us to work for each others benefit?"