W46: Weekly Mutton and Lamb Update

Published Nov 24, 2022
Tridge's global market analysts and country representatives take a deep dive into what happened during W46 in the global lamb and mutton landscape. In summary, global meat production increased by 1.24% to 360.1 million tons, with lamb accounting for 4.6%. In Europe, French lamb meat had the highest price at EUR 8.00/kg followed by Spanish lamb at EUR 7.28/kg. The Australian national sheep yarding registered a decrease of 47%, amounting to 187,000 heads WoW. AgResearch found out that a kilogram of New Zealand sheep meat has a carbon footprint of just under 15 kilograms of CO2 equivalent emissions per kilogram, making it is among the most carbon efficient in the world. In the UK, sheep meat production in October totalled 24,400 tonnes, up 6% (1,400 tonnes) on the revised September production figures of 23,000 tonnes. In South Africa, prediction indicates that Class A lamb will price at R95.20/kg by the end of this year while Class C lamb is expected to increase from R69.14/kg to R72.80/kg. Turkish sheep purchase prices were increased to 94 TL/Kg for lamb and 88 TL/Kg for full-bodied lamb. Lastly, according to Vietnamese traders in Ninh Thuan, the price of sheet sold at the barn is currently ranging from 80,000 to 95,000 VND/kg.


World Meat Production Increases by Just Over 1% In 2022

There will be about 360.1 million tons of meat, a little less than what was forecasted last June (360.1 million tons), but 1.24% more than the 2021 production. This is almost 6% more than the production of 2020, the year of outbreak of the current pandemic. Compared to last year, the four meats evaluated by the FAO must register an increase in the production where each accounting: poultry-38.5%; pork-34.6%; beef- 20.5%; lamb- 4.6%; and other meats-1 .7%. Per capita consumption, in turn, tends to remain almost stable, with an increase of less than half a percent due to a 1% increase in pork, 0.72% in beef and 0.44% in lamb.


Where Was the Most Expensive Lamb in the World in the Fall of 2022?

Due to the crisis and high prices for quality lamb, European consumers are switching to alternative chicken meat. According to Bord Bia, an Irish mutton price tracking system, as of the end of October 2022, France was the leader in mutton prices at 8.00 euros per kg followed by Spain with a price of 7.28 euros / kg. In Ireland, a kilogram of mutton cost an average of 6.13 euros/kg while in the UK it went for 6.00 euros/kg. As for the two largest world lamb markets, New Zealand and Australia, the average price for lamb for the week ended October 29 was 5.23 euros / kg and 4.81 euros / kg, respectively. While the prices sound good for lamb producers, the cost of raising beef sheep is also rising every year, given pasture maintenance and veterinary drugs.


Exporters to Benefit From Growing Global Appetite for Sheep Meat

Australian exporters can expect to benefit from the rising global demand for sheep meat. Australian farmers will also enjoy better producer prices. The OECD-FAO expects global sheep meat consumption to increase by 15% to 18.1 million tonnes (MT) over the next decade. This is up from 15.9 MT in 2021. Demand will be driven by increased meat consumption in developing countries and more consumers becoming familiar with sheep meat in wealthy countries. Producer prices for Australian sheep meat are also expected to increase at a faster rate than other meat. This is due to higher relative consumption of more expensive lamb products. Between 2019 and 2021, sheep meat accounted for 1.5% of the 120.8 MT of global meat consumption. China and the US are the largest consumers of sheep meat. Australia exported an average of US$3.2 billion of sheep meat each year, accounting for 37% of global exports. New Zealand (US$2.9 billion, 33% of world total) and the UK (US$0.6 billion, 7% of world total) are the other major sheep meat exporters.

Retail Lamb Prices Grow 200% Since Turn of Century

In recent months a large overflow of old season lambs processed were able to be shifted into our export markets and still at a good price. Over the last two decades Australia's domestic red meat consumption has plummeted, sheep meat in particular. According to the latest red meat data from the Department of Agriculture, Water and Environment (DAWE), in 2000, 62 per cent of Australian lamb was consumed domestically, with the remainder exported. Just over 20 years later, in the first half of 2022, 60pc of Australian lamb production was exported with almost all of Australian mutton exported. In fact, export demand is stronger than it has ever been. MLA's group industry insights and strategy manager Scott Cameron said there has been a number of fundamental changes during the course of the 20 years attributing to the domestic decline.

Weekly Sheep Market Wrap

National sheep yardings fell by 47% which is about 187,000 heads WoW. The state declines performed as follows: NSW numbers declined by 60% indicating 127,000 to 83,000 heads, Victorian numbers fell by 43% resulting in about 57,000 to 76,000 heads, South Australia yardings were firm, only softer by just over 1,000 heads and WA yardings were stable. A key sale that defines how the sheep and lamb market has performed this week, as well as for large parts of 2022, is the Wagga Wagga sale. From last week’s all-time record yarding of 80,050 head and prices softening significantly across all categories, through to this week’s reduced yarding and a massive improvement in price, the intense volatility of the market is as clear as it comes. The National Heavy Lamb Indicator (NTLI) improved 46c/kg cwt on Thursday on the back of the significantly reduced yarding at Wagga driving robust demand, clearly engaging buyers to secure stock from a smaller supply pool. The indicator hit 759c on Thursday after reaching its lowest price point since late August of 715c/kg cwt on Wednesday.  

New Zealand

Beef and Lamb Among the Most Carbon Efficient in World

New research has confirmed the carbon footprint of New Zealand beef and lamb is amongst the lowest in the world. The comprehensive study by AgResearch has found that a kilo of New Zealand sheep meat has a carbon footprint of just under 15 kilograms (kgs) of CO2 equivalent emissions per kilo. Meanwhile, the carbon footprint of New Zealand beef is just under 22kgs– making the country’s red meat among the most efficient in the world. The researchers, which compared New Zealand’s on-farm emissions to a range of countries’ footprints across the globe, concluded that when New Zealand beef or sheep meat is exported, the total carbon footprint is lower or very similar to domestically-produced red meat in those nations. This is because New Zealand is so efficient at the farm level, which represents about 90-95% of the total carbon footprint. New Zealand’s on-farm footprint was about half the average of the other countries compared in the study.

United Kingdom

Animal Breeding Strategies Key to Tackling Global Warming

Specifically designed animal breeding strategies will be able to identify cattle and sheep that inherently produce less methane than others. That’s according to Dr. Steven Morrison, programme leader on sustainable livestock production at the Agri-Food and Biosciences Institute (AFBI). Speaking at the 2022 AFBI science outlook conference, Morrison confirmed that the adoption of new and nearly new technologies can bring about a 23% reduction in greenhouse gas (GHG) production levels. The latest research has indicated that by breeding for methane reduction, it should be possible to reduce GHG emissions by 24% up to 2050. And this figure could be even greater, assuming the continuing advancement in scientific research.

Throughputs Drive Uplift in Sheep Meat Production

According to latest Defra figures, UK sheep meat production in October totalled 24,400 tonnes, up 6% (1,400 tonnes) on the revised September production figures (of 23,000 tonnes). Average carcass weights held steady last year at 19.9kg, however were 200g up on those recorded for September. Clean sheep slaughter stood at an estimated 1.1 million head, up 64,000 (6.2%) on revised September figures. Throughputs were down on last year, back 12,000 (1.1%). Adult sheep kill was both up on last month (0.7%), as well as on last year (7.2%). Year to date (Jan-Oct), throughputs of clean sheep totalled 9.79 million head, up 312,000 head (3%) on the same period last year. Slaughter of adult sheep also rose, totalling 1 million head for the year to date, up 5% from 950,000 for the same period in 2021. Year to date (Jan-Oct), production of sheep meat totalled 225,300 tonnes, up 9,100 tonnes (4.2%) on the same period last year. Carcass weights of clean sheep for the year to date averaged 20.3kg, 200g (1.0%) up on the average seen for the same period last year, while adult sheep carcass weights are down 400g (1.6%). This indicates that throughputs are largely responsible for the uplift in sheep meat production.

Processors Slow to Move Up Weight Limits for Lambs in Northern Ireland

Processors have been slow to move up weight limits for lambs in Northern Ireland, similar to what has been seen in the Republic of Ireland. The Livestock and Meat Commission (LMC) has said that the seasonal changeover to paying for heavier lamb carcasses this year has been later than in previous years, with factories quoting up to 22kg during late-October last year. Northern Irish processors have said that the increase in availability of lambs for slaughter in the last number of weeks is down to producers feeding less meal, coupled with slow grass growth during the dry spell, which slowed down the number of finished lambs coming on stream during the summer months. The average carcass weight during the six-week period up the week ending November 12, was 21.5kg. This is up from the previous six-week period, reflecting the quality of lambs coming forward for slaughter, according to the LMC. Quotes for R3-grade lambs ranged from 505-510p/kg this past week up to a 22 kg carcass weight. Next week, base quotes of 515p/kg are expected across factories. Supplies of lambs in Northern Ireland in recent weeks have been strong, the LMC said, with 63,939 lambs processed by the three factories during the last six-week period. This is an increase of 11,884 head compared to the corresponding period of 2021, and is also ahead of 2020 levels by 653 head.


Lamb Prices on the Rise Again

At the start of last week, base prices for lambs increased by 5-10c/kg. This week, at some meat processing plants, further increases of 10c/kg have materialised. Factories that were slow to increase prices for lambs last week have increased their offering for lambs by 10c/kg at the start of this week. This is leaving base prices currently for lambs at €6.05-6.20c/kg.

The Weekly Sheep Kill Is Back Up Over 60,000 Head

The weekly sheep kill is back up over 60,000 head having fallen back the previous week in account of the four-day week due to the bank holiday. Figures from the Department of Agriculture, Food and the Marine (DAFM) show that 63,415 sheep were processed last week (week ending November 12), which is an increase of 9,444 head from the week prior. Lamb and ewe supplies increased, with hogget throughput the only category to see a decrease. Spring lamb supplies totalled 53,519 head, an increase of over 7,000 head on the previous week, while ewe and ram throughput tallied 9,427 head, an increase of just under 2,000 head on the week prior. The number of hoggets processed decreased to 467 head.

Lamb Prices Improve by a Minimum of €5/Head at Marts

The trade at marts for all categories of lambs in the past two weeks has lifted in line with factory prices. This past week alone, mart managers have been calling for an improvement in lamb prices of a minimum of €5/head, with some calling heavier lambs better by €8-10/head. Generally, 50kg plus lambs have been moving at prices above €140/head, but have also started from as far back as €135/head. Lambs in the 47-49 kg bracket have also pushed returns of €140/head and just above at some marts. They are generally starting from a base of €135/head for quality lambs, with lesser quality lambs starting from €127-130/head. Forward stores are generally continuing to sell above €100/head for 37-38 kg plus lambs. The trade for long-keep stores remains a tough place, with a lot of small light lambs still showing at marts. However, despite this, some mart managers have said to Agriland that the trade for these lighter stores has improved slightly. There isn’t much change to the ewe trade; although factory quotes for ewes have lifted 10-20c/kg in the past fortnight, there hasn’t been much change to ewe prices at marts. Heavy ewes remain scarce, with those at marts generally trading from €130/head to €160/head, with those weighing 90-95 kg plus pushing returns above this. A large proportion of lighter ewes are selling from €70/head up to €110-120/head across marts.

Minister Called On to Run Regional Meetings on Food Vision Report

Minister for Agriculture, Food and the Marine Charlie McConalogue has been called on to hold regional meetings on the Food Vision Beef and Sheep Group final report, similar to his tour of marts last year as part of the Common Agricultural Policy (CAP) reform. The Irish Beef and Lamb Association (IBLA) has said that the minister should “extend the discussion to all farmers”, and not just those stakeholders in the Food Vision Beef and Sheep Group. The IBLA made its comments after the Irish Natura and Hill Farmers’ Association (INHFA) submitted a statement to the wider group saying it would not support the final report that was debated at a meeting yesterday (Friday, November 18).


Bearish Session in Zamora With Decreases Lambs

The decrease has been the main protagonists of the session on November 14 at the Lonja de Zamora with a new drop in white pigs, to which lambs and cereals have been added. The highlight is the drop of 0.10 euros in suckling lambs, which means that those up to 11.50 kilos are listed at €5.80/kg and those that exceed that volume at 5.55 euros per kilo.

Meat Exports Outside the EU

The last of the CEXGAN reports in relation to meat exports outside the European Union show that the sale of sheep and goat meat fell by 13% to 12,648 tons and that of beef fell by 5% to 24,804 tons.


The Production Situation of Animal Husbandry in the First Three Quarters of Xuchang City, Henan Province Is Generally Good

Since the beginning of this year, Xuchang City has focused on the goal of improving the quality and efficiency of animal husbandry, coordinating the prevention and control of epidemics and the supply of important agricultural products, doing everything possible to stabilize animal husbandry production, strengthening incentives, and paying close attention to work implementation. Animal husbandry production has maintained a good and stable development trend in the first three quarters. Beef cattle and sheep are developing rapidly. In the first three quarters, the city's cattle stock was 98,400 heads, an increase of 1.13% over the same period last year, and 50,200 cattle were slaughtered, an increase of 0.6% compared with the same period last year; The same period last year increased by 3.25%, and 518,100 sheep were slaughtered, an increase of 2.53% over the same period last year. 

South Africa

Why Christmas Lunch Will Cost More This Year

Data provided from Absa’s latest Agritrends report for 2022 found that over the past 12-18 months, livestock and meat prices increased so rapidly at such high rates that the phenomenon of “meatflation” was coined by analysts. Absa reported that lamb and mutton prices are strongly linked to beef prices, with a correlation of around 80%. This suggests that high beef prices could provide room for lamb prices to also increase substantially towards the end of 2022. Lamb and mutton farmers are rebuilding flocks in light of better farming conditions, said Absa. This, in turn, restricts the number of animals available for slaughter, squeezing supply while demand remains the same. Class A lamb cost R86.98/kg at the end of 2021. However, this has had a massive jump, forecast to settle at R95.20/kg by the end of this year. Class C lamb is also expected to increase from R69.14/kg to R72.80/kg.


A New Step for Meat Prices From ESK

According to the statement made by ESK, the update made within the framework of market regulation responsibility, sheep purchase prices were increased to 94 TL/Kg for lamb and 88 TL/Kg for full-bodied lamb.

6300 Awassi Sheep Will Be Distributed to Breeders in Denizli

It was stated that 6,300 small cattle will be distributed to the producers within the framework of the Awassi sheep program, which was implemented after the last Karya sheep and hair goat project in Turkey. The 'National Ovine Breeding in the Hands of the People' project, implemented by the Ministry of Agriculture and Forestry, started to be implemented in Denizli for the first time in 2011 with the support of 12,600 Karya sheep provided to 61 breeders. In 2022, a new project was added to the animal breeding works, the framework of which was expanded with 6,300 hair goats distributed to 49 breeders in 2016. With the Livestock Support Implementation Communiqué published in the Official Gazette on 12 November 2022, farmers engaged in Awassi sheep herding in Denizli were included in the project. For the project, which will be composed of 6 thousand broodstock and 300 male animals, the applications of the breeders who have a herd size of at least 100 heads and are older than 1 year old Awassi sheep will be evaluated and included in the project.


Interventions for Sheep and Goat Breeders, Together With Eco-Payments Under the Strategic Plan

In the sixth part of the series, interventions aimed at the development of the "Sheep and Goats" sector, programmed for financing by the EFSI were presented. For the first time in the plan, there will be extraordinary support for certified organic sheep and goat breeders, financed by the European Agricultural Guarantee Fund (EAGF). It is about the ecosystem for maintaining organic farming (farm animals). It will support farmers throughout the country whose animals have passed the period of transition to organic production. These payments are per hectare of pastures and meadows, and the total budget foreseen until 2028 is close to 41 million euros. In the first year 2024, organic livestock breeders will distribute 6,660,662 euros, in 2025 - 7,353,817 euros, in 2026 - 8,119,616 euros, in 2027 - 8,965,573 euros and in 2028 - 9 900,278 euros. The annual planned unit amount that sheep and goat farmers will receive per hectare will vary from EUR 286.28 to EUR 357.85. The additional payment for organic sheep and goat breeders will be BGN 57.20 per hectare.


The State Duma Extended the Exemption From VAT on the Import of Breeding Animals

The State Duma adopted a law in the II and III readings, which extended the exemption from VAT on the import of breeding animals and fish into the Russian Federation until January 1, 2025. We are talking about the import and sale in the Russian Federation of breeding cattle, pigs, sheep, goats, horses, poultry and eggs. The list also includes embryos obtained from the seed of these farm animals. Exempted from value added tax, including breeding fish and juveniles derived from it.


The Output of Red Meat Increased by 4% YoY 

According to the Statistical Center of Iran, A total of 54,455 tons of red meat were produced in Iran's official slaughterhouses during the month ending Oct. 22 to register a 6% decrease in output compared to the previous month and a 4% rise YoY. A total of 24,464 tons of lamb (up 18% YOY), 3,868 tons of goat meat (down 12% YOY) and 972 tons of meat from other types of livestock were produced during the one-month period, accounting for 44.9%, 7.1% and 1.8% of the total output respectively.


They Build 100 Sheds to Protect 10,000 Head of Cattle in Pasco

The Agrorural program built 100 sheds to protect more than 10,000 head of cattle, including alpacas and sheep, from low temperatures in the Pasco region. In addition to protecting cattle from adverse weather events (snowfall, hail, heavy rain and frost), the sheds in Pasco reduce mortality and morbidity and thereby facilitate livestock activities such as fibre or wool shearing, breeding, calving animals and food.


Goat and Sheep Prices Fall, Ninh Thuan Farmers Face Difficulties

In the past 2 months, the price of goats and sheep in Ninh Thuan province has continuously decreased. Not only did the price fall, the consumption of goat and sheep meat also faced difficulties. From the beginning of October until now, many livestock farmers in Phuoc Minh commune, Thuan Nam district are yet to sell any goats. The herd of dozens of goats from many households has come to an end, but when called, traders refuse to buy. According to traders in Ninh Thuan, the price of goats sold at the barn is currently ranging from 90,000 to 105,000 VND/kg, while sheep are from 80,000 to 95,000 VND/kg. Compared to more than a month ago, the price of goats and sheep has decreased from 15,000 to 20,000 VND/kg. Currently, Ninh Thuan province has a total herd of more than 250,000 goats and sheep, including nearly 120,000 sheep and over 130,000 goats. Ninh Thuan goat meat products were granted the Certificate of Trademark Protection by the National Office of Intellectual Property (Ministry of Science and Technology) "Ninh Thuan Goat"; lamb products are granted protection of geographical indications for lamb products originating from "Ninh Thuan" in order to affirm the quality and reputation of local specific products.

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