The size of Wales' national sheep flock is at the lowest it’s been for 13 years, a new industry survey has confirmed.
Wales' flock figure of around 8.7 million recorded for the last two years is the lowest level since 2011.
This includes a lower number of breeding ewes which will have an immediate effect on next year's lambing season.
High farm input costs and low farmgate returns are likely continuing to influence farmer intentions.
The figures are included in a new survey by levy organisation Hybu Cig Cymru-Meat Promotion Wales, published today.
It also shows that beef and dairy herds across Wales are down on previous figures.
The number of ewes for future breeding was down one percent on the year, with fewer breeding sheep inevitably meaning fewer lambs in the next lamb crop.
HCC said it'll be doing an impact study in coming weeks to gauge "what this might mean for our economic sustainability and likely future livestock trends."
“Maintenance of that flock level must be our overriding concern; we must really work hard to protect these numbers going forward.
"More than ever, this sector needs confidence and reassurance to put the brakes on decline and build stability for the future of our Welsh family farms and its red meat supply chain."