W3: Weekly Lamb & Mutton Update
Australia
2022 Winners and Place-Getters in the Australian Sheep Meat Export Sector (Jan 18)
The Australian lamb market found new export destinations among the traditional in 2022. In 2022, Australian lamb exports were up 7% from the previous year, reaching 284.26K MT, the largest export figure on record according to reports from the MLA. Mutton exports were similar to lamb, growing by 2% for the year to 144.01K MT. The main difference in mutton being that exports to the five largest markets fell by 4%, mostly due to US exports falling by 23%, while other exports rose by 25%, representing a major diversification of export markets.
New Zealand
Local Sale-Yard Prices of Meat for W2 in New Zealand (Jan 20)
The average local slaughter and export price trends for W2 were as follows:
W2 prices vs. W50 prices:
- Lamb NI, 18kg - USD 4.59/kg (NZD 7.15/kg) vs. (USD 5.07/kg (NZD 7.90/kg)) - 9% decrease,
- Export Lamb Flaps, China - USD 6.14/kg (NZD 9.57/kg) vs. (USD 6.26/kg) (NZD 9.76/kg)) - 2% decrease.
Prices are expected to stay under pressure as volumes increase due to good grazing conditions. NI = North Island of New Zealand; 18kg = lamb carcass weight.
United Kingdom
Lord Hannan of Kinsclere and the Minister for International Trade, Lord Johnson of Lainston spoke on international trade in favor of New Zealand lamb. The two peers both stated during the House of Lords debate that lamb produced more than 11K miles away was 'better for the environment' than British lamb. The UK signed a free trade agreement with New Zealand in February 2022, despite concerns from the farming industry over production standards.
Ireland
Irish Government Must Fund Active Suckler, Beef and Sheep Farmers (Jan 16)
The president of the Irish Cattle and Sheep Farmers’ Association (ICSA) Dermot Kelleher said that government funding is urgently needed to support active suckler, beef and sheep farmers. Kelleher welcomed the recent announcement from the Minister for Agriculture, Food and the Marine, Charlie McConalogue, that a beef reduction scheme is “off the table” as part of the Climate Action Plan. During a meeting with Minister McConalogue prior to Christmas, the ICSA proposed a USD 272.47M (€250M) annual support programe to help farmers to meet climate targets. USD 54.49M (€50M) was proposed for sheep farmers in order to deliver a payment of USD 38.15/ewe (€35).
Farmers Urged to Hold Back Lambs as Latest Price Cuts Blasted (Jan 17)
Farmers finishing lambs have been told to hold out for USD 7.63/kg (€7.00), with anything less than this resulting in selling below the cost of production. This is according to the sheep chair of the Irish Cattle and Sheep Farmers’ Association (ICSA), Sean McNamara, who has blasted the latest factory cuts for lambs and said it has “gone beyond a joke” at this stage. The ICSA representative went on to say that what factories are offering amounts to nearly giving the lambs away free gratis. McNamara added that lamb from New Zealand flooding into the EU market is not helping the trade in Ireland and said more needs to be done by Bord Bia to market Irish lamb properly.
Farmers in Ireland Need to Send a “Clear Message” on Lamb Prices, According to IFA (Jan 21)
A public meeting is to be held on January 23 that aims to send a “clear message” on lamb prices and highlight the “dire state” the sector is in, according to the Irish Farmers’ Association (IFA). Kevin Comiskey, the sheep chair of the IFA, told Agriland that a room “full of sheep farmers from every neck of the woods in Ireland is needed” to send a clear message, that if there is no intervention, there will be no future for the sector. It was pointed out to the farmers about the fodder crisis and the support made by the department to aid farmers in making fodder, but we told him that silage won’t finish lambs.
Farmers Voice Concerns About Price of Sis Eligible Rams (Jan 22)
Sheep farmers expressed concern about what the price of Sheep Improvement Scheme (SIS) eligible genotyped rams would be this year, at the latest Teagasc sheep seminar in Roscommon. Following a presentation by the Teagasc Business and Technology advisor James Kelly on the scheme and what it involves, farmers’ raised concerns over the money they may have to spend on buying a scheme eligible genotyped ram.
China
Price Increase of Uruguayan Lamb Meat in China in W2 (Jan 17)
Lifting the zero-Covid policy in China was well received in the meat market, increasing demand and sales. During W2, a price increase of Uruguayan sheep meat was noted, with deals between USD 4.20K/MT to 4.30K/MT CFR for lamb carcasses of 9 to 24 kg.
Russia
The Number of Sheep in the Russian Federation Has Decreased by 16% Since 2015 (Jan 19)
The reduction in the number of sheep in Russia since 2015 amounted to about 4M heads, Mikhail Yegorov, general director of the National Union of Sheep Breeders, said. Thus, the total reduction in livestock over seven years was about 16%. "We do not yet have all the results, but there are some indicators on which the National Union of Sheep Breeders made an assessment. Until 2015, sheep and goat breeding in the Russian Federation gained momentum against the 90s and reached 24.88M heads. Since December 2015, Russia lost 4M sheep in the past year," he said during the forum "Development of Sheep Breeding in the North Caucasus." Egorov noted that the active pace of development of sheep breeding is now observed in Dagestan.
Ukraine
Estimated Data on the Number of Farm Animals in Ukraine (Jan 19)
As of January 1, 2023, agricultural enterprises and households estimated the number of livestock animals. It was estimated that sheep and goats totaled 965.2K heads which is 11.5% less than on January 1, 2022. This was reported by the Ministry of Agrarian Policy, referring to its own calculations.
