W49: Weekly Lamb & Mutton Update
Global
Global Production of Sheep Meat Could Be Close to 16.5 Million Tons in 2022
According to the short-term forecast of the Food and Agriculture Organization of the United Nations (FAO) published in November, the global production of sheep meat could be close to 16.5 million tons in 2022, which means an increase of 1 percent compared to the amount produced in 2021. Sheep meat may account for almost 5 percent of the world's meat production this year. 82 percent of the world's sheep meat production can come from Asian and African countries. The largest sheep meat producing country is China (5.2 million tons), the other large sheep meat producers on the Asian continent are India (840 thousand tons), Pakistan (782 thousand tons) and Turkey (526 thousand tons), while in Africa Nigeria (405 thousand tons) ) and Algeria (355 thousand tons). Australian farmers may send more sheep and lambs to slaughterhouses in 2022 than the previous year, which is why sheep meat production in Australia may increase by 4 percent to 711,000 tons. By contrast, in New Zealand it may decrease by 2 percent to 435,000 tons. In the world sheep meat trade, both exports and imports are expected to grow by 1 percent this year. 78 percent of the sheep meat entering the international market may come from Australia and New Zealand. China, the USA and the European Union may be the biggest importers of sheep meat in 2022.
In November, Out of All Types of Meat, the Price of Lamb Rose the Most in the World
The average value of the FAO Meat Price Index in November was 117.1 points, which is 0.9% below the October level. The index fell for the fifth month in a row, but its value is still 4.1% higher than for the same period in 2021. World prices for other types of meat except for beef, on the contrary, began to rise, and the most in lamb. This happened under the influence of stable import demand and despite a seasonal increase in supplies from Oceania.
New Zealand
Meat Slaughter Saleyard Prices in North Island in W48
Grass cover continues to exceed expectations due to warmer weather and good rainfall conditions as summer approaches. These improved grazing conditions contribute to higher volumes at the sale yards and continue the downward pressure on prices as expected. Exported prices are expected to decrease as volumes increase and warmer weather with good rainfall arises. The average local slaughter price trends in W48 for Lamb in North Island of New Zealand (18kg) was USD 5.28/kg (NZD 8.25/kg), a 1.8% drop in price compared to W47 when prices stood at USD 5.37/kg (NZD 8.40/kg)
Spain
Sheep Table in the Ebro Fish Market
There was a repetition of prices on the sheep table in a week full of holidays. The market maintains equilibrium with an increase in supply, but also with an increase in sales. The offer increases, something normal at this time, but with the exception that, this year, it is going at a slower speed than usual. There is no abundance in the large lamb market that presses. More movement at the counters due to the demand as we find ourselves at the beginning of the month and the festive dates in this first week of the month.
China
Since Shangqiu City fully launched the centralised prevention and control of major animal diseases in autumn on September 24, the city's agricultural and rural departments have carefully deployed, acted quickly, strengthened measures, and made every effort to promote the centralised prevention and control of animal diseases in autumn. As of November 30, The city's autumn major animal disease centralised epidemic prevention work has been successfully concluded. This autumn, the city ordered a total of 2 million ml of cattle and sheep O-A bivalent foot-and-mouth disease vaccines, 1.64 million ml of pig O-A bivalent foot-and-mouth disease vaccines, and 520,000 doses of pig O-A bivalent synthetic peptide vaccines. 27.63 million millilitres of vaccines, 1.135 million doses of Peste des petits ruminants, plus the self-immunisation of large-scale farms "first immunised and then supplemented", a total of 2.7326 million immunised pigs, 236,200 beef cattle, 10,900 dairy cows, 1.8115 million sheep, and 46.7087 poultry Wan Yu, livestock and poultry should be exempted from immunisation density to 100%, and the qualified rate of immune antibodies is above 70%, which meets the national compulsory exemption requirements.
Australian Lamb Meat Competes With Uruguayan Lamb Meat in China in W49
Australian sheep supply in China is posing competition to Uruguayan meat as prices are similar. In W48, Chinese importers bid for Uruguayan lamb carcasses in a range of USD 3.6-3.8K/ton CFR, but in W49 lamb carcass sales of 9 to 24 kg were above the USD 4K/ton CFR. Starting from January 2023, Australian lamb carcasses will enter the Chinese market with 0% tariffs, creating strong competition for Uruguayan lamb carcasses as it enters China with a 15% import tariff.
Italy
This year the lamb on the tables on Christmas day will cost more, also due to the increase in production costs that Italian farms are facing. According to ISMEA surveys, conducted on a sample of Sardinian breed sheep farms that breed Sardinian IGP lamb, in 2022, the production cost of lamb (excluding depreciation and interest on capital) was on average equal to USD 5.39/kg (Euros 5.11) live weight net of VAT, showing an increase of 10% compared to what occurred a year ago. The increase in costs was determined not only by the inflationary push resulting from the energy crisis, but also from the exceptional climatic trends that have reduced the availability of forage, triggering a strong push towards upward prices for the products needed to supplement the sheep's diet. The most significant increases were recorded for energy costs (+48% between 2022 and 2021) and cultivation costs (+18%), especially for fertilisers (whose production process is highly dependent on the use of gas); but the greatest impact was determined by the costs for feed and above all forage (+6% and +54% respectively), which farmers necessarily had to purchase to make up for the lack of availability caused by unfavourable weather conditions (drought).
Romania
Golden jackals are decimating flocks of sheep and cattle
According to industry organisations quoted on Thursday by the Agrointel portal, the increase in jackal attacks is the result of the "rapid and uncontrolled" increase in the population of this animal in the Danube Delta. "Its numbers are increasing at an alarming rate. Jackals have caused great damage not only to sheep and cattle breeders, but also to wild animals: deer, young wild boars and birds" informed Agrointel. According to breeders' accounts, guarding a flock of sheep and cattle against jackals is difficult. "The jackal is a very cunning predator. You guard the herd, but it waits for you to leave. It attacks when the shepherd moves away from his animals," said one cattle farmer in western Romania.
Turkey
Lamb carcass slaughter prices registered an average increase of USD 0.27 (5 liras). According to the average prices published by the National Red Meat Council, lamb lean carcass cut prices increased from USD 5.63 (105 liras) to USD 5.90 (110 liras). Lamb carcass slaughter prices have increased by about 10% on average in the last month. The increase in carcass cutting prices will increase the prices of minced meat and cubed meat by an average of 10%. Accordingly, the prices of minced meat and cubes will increase between USD 0.54 (10 liras) and USD 1.07 (20 liras).
Russia
Russia Imported More Than 49 Thousand MT of Regulated Products in a Week
More than 49 thousand MT of regulated products were delivered to Russia from November 28 to December 4. These results were obtained by FGBU "VGNKI" after analysing the data of the state information system in the field of veterinary medicine. According to the study, more than 101MT of other meat (pork, lamb, horse meat), as well as more than 8,416 MT of feed and feed additives, were imported into the territory of the Russian Federation. Most of the products, 30.81 thousand MT, were delivered to Russia by road. About 14.61 thousand MT of food products were delivered by sea. About 3.76 thousand MT were imported to the Russian market by rail. Air transportation accounted for the least amount of products amounting to 0.06 thousand MT.
Saudi Arabia
Saudi Arabian Goat and Mutton Meat Importers Prefer Tanzanian Exporters to Somalian Exporters
Saudi Arabian meat importers prefer to source meat from indigenous, Tanzanian-owned exporters over Somalian exporters who have dominated the goat and mutton meat export business in East Africa. In Tanzania, most of the goat and mutton meat exporting abattoirs are owned by the Somalians who have also set up butchers in Saudi Arabia and other gulf countries. This makes it hard for Saudi Arabian importers to fetch good goat and mutton meat prices from Tanzania.
