W12: Weekly Lamb & Mutton Update
Europe
Livestock Population Is Decreasing in the EU (Mar 24)
In November/December 2022 in the EU, there were 134M pigs (-5% compared to 2021), 75M cattle (-1%), 59M sheep (-2%) and 11M goats. (-3%). The decrease in the sheep population in Spain was equivalent to 57% of the total reduction in the EU (630K heads; 4% compared to 2021), while the decrease in France was 36% of the total reduction in the EU (400K heads, 6 %). As for the goat population, the decrease in Spain was equivalent to 33% of the total decrease in the EU (130K heads; 5%). The reduction in Greece was equal to 23% of the total reduction in the EU (80K heads; 3%).
Australia
Concern Live Sheep Phase-Out Will Hit Livestock Breeder Trade (Mar 20)
Victoria’s Agriculture Minister Gayle Tierney failed to declare her support for the continued live export of sheep and cattle for breeding, fueling fears that state Labor Governments might not defend these trades in the future. Liberal MLC Beverley McArthur in W11 questioned Ms. Tierney about her stance on the live sheep trade and whether she supported the ongoing export of breeding sheep and cattle. When asked in Victoria’s Parliament by Mrs. McArthur if she supported the Albanese Government’s proposed live sheep trade phase-out, Ms. Tierney said Victoria had not exported live sheep since 2018. However, Mrs. MacArthur said there was a shipment of breeding sheep to Russia in 2019 from Victoria.
Price Pain Pulls Lamb Sales Into the New Year (Mar 21)
According to producers participating in the latest Meat and Livestock Australia (MLA) and Australian Wool Innovation (AWI) sheep survey, nearly 3M fewer lambs were sold from October through to December 2022 than they expected. Poor lamb performance due to weather conditions, and lower prices, were the biggest factors for the more than 50% of producers surveyed who sold less than planned. This means many of those lambs will be hitting the market in the next few months, at a time when supply has historically dropped down. The reformatted survey in October had a strong focus on determining the volume of lambs to be turned off through the spring flush and into the first half of 2023. MLA and AWI surveyed the same respondents in February, to gauge how those intentions had panned out and found nearly 30% fewer lambs were sold in the last quarter of 2022, taking it from an expected 11.84M to just 8.75M. In turn, 55% of producers now plan to sell more lambs from January to June this year than they reported in October, taking that projected figure from 10.17M head to 13.44M.
New Zealand
MIA Supports Kiwis Backing Farmers Campaign (Mar 20)
New Zealand’s red meat processing and exporting sector is supporting the Kiwis Backing Farmers campaign, saying the only sustainable way for the government to deliver better outcomes for the environment and the economy is to work with farmers. The campaign, spearheaded by Beef + Lamb NZ and rural advocacy group 50 Shades of Green, aims to highlight the cumulative effects of successive policies, such as the wholesale conversion of productive sheep and beef farms into carbon farms, on rural communities. “New Zealand’s sheep and beef farmers are already among the most carbon-efficient and environmentally sustainable producers of red meat in the world,” Meat Industry Association chief executive Sirma Karapeeva said.
United Kingdom
The first Ramadan within the cost-of-living crisis begins around 22 March 2023 and research suggests it could look different from previous years. With the population of Muslim consumers on the rise, demand for Halal meat has increased. However, there is an anticipation that the types of meats Halal consumers choose to slightly switch this year away from lamb to mutton and chicken. This has already been anticipated by the industry with strong demand and prices for ewes in recent months. AHDB research in 2019 highlighted the demand for Halal meat and since then the Muslim population in the UK has increased further, up from 2.7M in 2011, to 3.9M in 2021, making up 6.5% of the UK population, rising from 4.9% ten years prior. While London and Birmingham are the top locations, analysis by the Muslim Council of Britain indicates that 40% of the Muslim population of England reside in the most deprived fifth of local authority districts; nearly half a million more than in 2011. Research from AHDB with YouGov1 suggests that half of Muslims have seen their household finances get worse in recent months (2022).
Ireland
Sheep Farmers in Ireland Are Battling to Survive Every Day of the Week (Mar 20)
Irish sheep farmers are currently fighting to survive on a daily basis, according to Independent TD Carol Nolan. Efforts to develop new international market opportunities for the sheep farmers “will not be worth the paper they are written on” in the absence of urgent action to secure the viability of the national sector, according to a TD. Independent deputy Carol Nolan, who represents the Laois-Offaly constituency, recently met with several farming organizations to discuss the ongoing crisis in the sector. She said the meetings focused on “the ongoing price pressures and razor-thin margins that sheep farmers are facing as they battle to survive every day of the week”. Independent TD for Laois-Offaly, Carol Nolan The TD said that any international market opportunities for sheep farmers are “redundant” without a vibrant domestic sector. “One of the explicit goals of Food Vision 2030 is securing market access and diversifying trade and market opportunities at home and abroad for Irish farmers.
ICSA Urges Sheep Farmers to Attend a Crisis Meeting (Mar 21)
The Irish Cattle and Sheep Farmers’ Association (ICSA) urged sheep farmers to attend a meeting on March 21 focused on the crisis in the sector. The issues impacting sheep farmers, including high input costs coupled with low prices, will be addressed in The Bush Hotel in Carrick-on-Shannon, Co. Leitrim from 8:00 p.m. The ICSA is currently campaigning for a USD 53.83M (€50M) rescue package for the sheep sector to be funded through the Brexit Reserve Fund (BAR) under which Ireland was allocated a total of USD 1.08B (€1B). ICSA Sheep Committee chair Sean McNamara said, “the value of sheep meat exports increased by 17% to total USD 512.45M (€476M) during 2022 but individual sheep farmers cannot make a viable living. Their profits certainly haven’t gone up by 17%, in fact, they have gone down by 81% to a margin of USD 7.54/eve (€7), all while the cost of production has risen significantly. The processors and the retailers might be making money out of sheep farming but the sector at the primary producer level is in crisis and time is running out,” he said.
Spain
Herds of Official Sheep Fight Depopulation in Empty Spain (Mar 26)
In Brieva de Cameros there are more sheep than people, but not as many as before nor enough to guarantee the future of a small town in La Rioja, which in an attempt not to disappear has decided to raise a municipal flock to try to revitalize the town from livestock. "Our industrial estate is made up of the pastures we have, which are very good," Pedro Somalo, mayor of this town of barely 20 inhabitants and some 10K head of sheep, said, of which almost 1K are "officials" belonging to the herd of the municipality and will be used in a school for shepherds to teach the trade. This is not a unique case and in several towns in Spain at demographic risk, municipal herds have been promoted to carry out extensive livestock projects with which to revitalize the territory, generating jobs and activity in the municipalities.
China
Chengdu Vigorously Promotes the High-Quality Development of the Cattle and Sheep Industry (Mar 23)
Chengdu City vigorously promotes the high-quality development of the cattle and sheep industry to ensure the safety of the supply of livestock and poultry products, build the cattle and sheep industry park, and introduce policies from the aspects of finance, technology, land, and insurance to support the new (reform) construction of cattle and sheep standardized scale farms (households), manure resource utilization projects, and construction of large-scale cattle and sheep intensive processing enterprises. The other agenda is to strengthen the protection of local genetic resources in Chengdu, such as hemp sheep and central Sichuan black goat (Jintang type), support the national level, and establishment of provincial-level core breeding farms.
South Africa
South Africa’s Lamb Price Dropped in W11 Due to High Supply and Low Demand (Mar 22)
By the end of W11, South Africa was selling lamb at USD 4.60/kg for class A2/A3 and USD 3.42/kg for class C2/C3, showing a decline of 2.9% and 3.07% respectively, compared to the closing prices of W10 at USD 4.74/kg for class A2/A3 and USD 3.53/kg for class C2/C3. The decline in mutton prices is mainly due to increased supplies coupled with lower demand.
United States
Weekly Sheep Market Wrap in the US (Mar 24)
Sheep and lamb yarding remained firm in W12. Varied quality at markets such as Wagga Wagga impacted buyer activity. Some processors were still working through stock secured in direct contracts with reports of some facilities heavily booked. This has reduced the sense of urgency for stock in the market, contributing to the easing of prices. The Trade Lamb Indicator eased 11¢ WoW with some key contributors trading under the national average. Sheep slaughter made an increase of 31% WoW, heightening the YoY change to nearly 73K head. In contrast, lamb slaughter eased to 343.66K head, 10K head below this time last year. Recent easing in prices occurred more sharply for the Mutton Indicator than for heavy lambs, which has been able to maintain a relatively stable price comparatively. Since June 2022, the Mutton Indicator eased 51% to 317.14¢/kg cwt whereas the Heavy Lamb Indicator only eased 11%.
Morocco
Morocco Will Import 18K Heads of Sheep This Year (Mar 22)
Morocco is currently facilitating import procedures without the orientation to specific markets. In order to guarantee the supply of red sheep meat on the national market, the Minister of Agriculture, Maritime Fisheries, Rural Development, Waters and Forests, Mohammed Sadiki, announced the arrival of 18K heads of livestock in Morocco in W13. According to the Minister of Agriculture, importing cows will take time as it is done from distant countries, and the high prices on the world market have affected the level of imports. However, this will not prevent the continuation of the operation because it is necessary to preserve, restructure and regenerate the national herd. The government has lifted uncertainties regarding the import of sheep from Australia to deal with the rise in sheep meat prices on the Moroccan market, and has taken measures to facilitate the import process, reports L'Opinion.
Peru
Agro Rural Delivered 40 Sheds to Protect 4K Sheep (Mar 20)
The Agro Rural program delivered 40 sheds in the Apurímac region, which will help protect 4K heads of sheep from four communities in the Tumay Huaraca district, located in the province of Andahuaylas. This delivery, which benefits 40 families, adds to the 100 structures already implemented at the departmental level. During the ceremony, in which representatives of the district municipality and community members participated, the head of the Apurímac Zonal Unit, Javier Alanya, highlighted the sheds, mentioning that they will protect livestock from adverse climatic phenomena, such as hail, rain, and frost.
