W8: Weekly Lamb & Mutton Update
Australia
Processors in Australia Put Through More Heavier Lambs for a Record Result (Feb 20)
Historically high carcass weights, a genetically superior lamb drop and an increase in processing underpins Australia’s record lamb slaughter last year, according to Meat & Livestock Australia. Lamb slaughter reached a record high in 2022, with 21.45M lambs processed, the highest volume since the drought-induced liquidation of 2019. This was a rise of 2.9%, representing 595.4K head. Sheep slaughter in 2022 exceeded MLA’s July release of Sheep Projections by 7.7% (512.5K head), to register 6.63M sheep processed. This volume was 15% (864.7K head), compared to 2021 rates.
Eid Sheep and Goat Tag Subsidy for NSW Ruled Out at Broken Hill Meeting (Feb 22)
New South Wales Government officials have ruled out an electronic tag subsidy for sheep goats, instead backing a national tag tender to minimize costs in a mandatory EID rollout. At the recent Broken Hill EID information session, NSW Department of Primary Industries group director of livestock systems Dougal Gordon said the biggest upfront costs of a mandatory system would be met by sale yards, but the greatest costs over time would be borne by producers. He said the initial government position at this stage is not supportive of subsidies.
Agforce Insists That Sheep Eid Tagging Costs Must Be Equitable in Australia (Feb 22)
An incentive of 50% of the cost of electronic identification tags should be offered by the state government, according to AgForce's Sheep, Wool, and Goat board president Stephen Tully. The board discussed the planned shift to compulsory tagging of sheep and goats with electronic identification tags at last week's meeting, after which Mr. Tully said it was understood that Queensland would be "roughly" following the schedule set by NSW. Under that jurisdiction, all sheep and farmed goats born on or after January 1, 2025, will require an eID tag, and all sheep and farmed goats leaving a property will require an electronic identification tag from January 1, 2027. Mr. Tully said that considering many parts of the industry would benefit from the traceability that compulsory tags would bring, including governments managing disease incursions, and processors, they would like to see the cost of the tags shared around.
Western Australia’s Government and Pastoralists Reiterate Support for Sheep Exports (Feb 22)
Western Australia’s Labor Government and pastoralists have reiterated their support for live sheep exports despite federal Minister Agriculture Minister Murray Watt’s assertion the trade had lost its social license. Although WA Labor Government leaders have stopped short of outlining whether or how they intend to fight the Federal Government’s planned phase-out of the trade. In a Senate Estimates hearing in W7, Mr. Watt said live sheep exporters had “lost their social license because of a range of incidents” and community opinion is that the trade should be phased out. The statements prompted the Pastoralists and Graziers Association of Western Australia to label the Australian Labor Party’s election commitment to phase out the live sheep export trade as reckless and irresponsible, claiming Mr. Watt’s comments show how ill-informed the Federal Government is about the importance of the live export trade to WA’s regional economy.
Australian Local Sale-Yard Prices of Meat in W7 (Feb 25)
In Australia, the average local slaughter and export price trends for W7 were as follows: W7 vs. W6:
- Lamb NI, 18kg - USD 4.31/kg (NZD 7/kg) vs. USD 4.28/kg (NZD 6.95/kg) + 0.7% marginal increase
- Export Lamb Flaps, China - USD 6.32/kg (NZD 10.26/kg) vs. USD 6.34/kg (NZD 10.29/kg) -0.3% marginal decrease.
United Kingdom
Red Meat Exports From the UK Reach Record Levels (Feb 20)
According to the latest data from HMRC, the total value of red meat shipments increased 22% YoY, with over 609K MT exported around the world, up 9%. Sheep meat exports were up 7.8% in volume to 78.84K MT, with the lion’s share destined for the EU, making up 94% of the total shipments.
Aldi’s Move to Drop Support for British Lamb Criticized (Feb 22)
Aldi's move to drop its support for British-produced lamb and beef has been criticized as 'demoralizing' by the UK sheep sector. The discounter has stepped back from its 100% commitment to British lamb and beef, which has been in place for years. The National Sheep Association (NSA) said the controversial move amounted to a 'blatant disregard' for British produce. Farmgate prices for lamb are currently under huge pressure, with GB prices down by 13% compared to the same week last year. At the same time, sheep producers are dealing with extreme inflation of input costs across fuel, feed, and fertilizer.
An Increase in Lamb Imports Should Be Stark Warning to Government (Feb 23)
An increase of 17% in lamb imports during September and November 2022 should serve as a “stark warning” to the UK government that Welsh producers need safeguards, the Farmers’ Union of Wales (FUW) has said. The increase in lamb imports, revealed by 2022 UK trade data, is due to increased import volumes from New Zealand and Australia through trade deals, the union said.
Research Shows Welsh Farmers Adapting to New Challenges (Feb 24)
Meat Promotion Wales (HCC) has thanked farmers for contributing to a major piece of research looking at the future of the livestock sector in the light of challenges posed by rising costs and post-Brexit changes to trade and support payments. Over 400 beef and sheep farmers responded to an HCC survey in late 2022 looking at their future business intentions. Encouragingly 43% of sheep farmers reported no change in stocking numbers, and 13% were increasing the size of their flocks. Those looking to keep slightly lower numbers (a reduction of 10% or less) amounted to 31% of the total sheep farmers.
Higher Sheep Throughputs Drive YoY Production Up in January (Feb 24)
Defra's latest figures for UK sheep meat production indicate that it totaled 21.4K MT in January, down 19.7% (5.2K MT) from December figures. Production typically falls when moving into the new year, as supply and demand ease after the festive period. YoY production was up slightly by 0.5% (100MT). Clean sheep carcass weights averaged 20.1kg in January, also following seasonal movements, increasing by 3.1% (0.6kg) on December’s average. However, compared to January 2022, average carcass weights were down 2.8% (-0.6kg).
Ireland
Over 38.5K Sheep and Goat Census Forms Returned (Feb 20)
The Department of Agriculture, Food and the Marine (DAFM) has confirmed that over 38.5K sheep and goat census forms have been returned by farmers. A DAFM spokesperson told Agri-land that of the 37.68K sheep returns received by February 15, 15.37K were made online, and 22.31K returns were sent by post. Of the 869 goat returns received, the department said that 552 were returned online, with 317 made on paper.
IBLA to Ask Member Views on Sheep Processor Protest (Feb 20)
The Irish Beef and Lamb Association (IBLA) will ask its members if they would support a protest (s) at sheep processing facilities. In a statement over the weekend, the IBLA criticized the recent protest by the Irish Farmers’ Association (IFA) in Roscommon town. “The IBLA is of the strong opinion that the only place that a protest associated with the current serious income situation for sheep farmers should be held at is a meat processing facility,” it said. According to the IBLA, the IFA’s request for USD 31.66/ewe (EUR 30) payment to sheep farmers is “at best a temporary band-aid to a serious problem in the sector”.
In W8 Sheep Trade, Hogget Price Fell 10C/KG as Ewe Price Steady (Feb 20)
In the W8 sheep trade, factory hogget price quotes pulled back by 10c/kg while ewe price remained steady. Price cuts for hogget materialized over the last three weeks after a brief recovery had been seen four weeks ago. W8 trade saw Kildare Chilling reduce its quota for hogget by 10c/kg to USD 6.23/kg (EUR 5.90) plus a 10c/kg quality assurance (QA) bonus. Irish Country Meats also reduced its hogget price by 10c/kg to USD 6.12/kg (EUR 5.8) plus a QA bonus of 20c/kg. Prices at the higher end of the market are now at USD 6.44/kg (EUR 6.10) in general, with some deals being secured by producers, particularly where larger numbers are on hand.
Rural TDs Stand Firmly With Sheep Farmers Amid Sector Crisis (Feb 24)
Rural TDs “stand firmly” with sheep farmers in their campaign for increased support by the government which has thus far failed to address the devastating situation, Deputy Mattie McGrath has said. Calls for a new ewe premium of at least USD 31.69/ewe (EUR 30) have been supported by the group of TDs led by Deputy McGrath who said the livelihoods of Irish sheep farmers depend on greater support. The leader of the Rural Independent Group was speaking after sheep farmers took their pleas to Dublin earlier in W8 to demand immediate and urgent financial support.
ICSA to Hold Protest on Sheep Crisis Outside the Dáil (Feb 25)
The Irish Cattle and Sheep Farmers’ Association (ICSA) is set to stage a protest calling for improved conditions for sheep farmers on February 28. The protest, which will take place outside the Dáil, will commence at midday and continue until 2:30p.m, before moving to Agriculture House on Kildare St. in Co. Dublin. The protesters will call for a support package for the sheep farming sector, similar to that which was provided to other farming sectors in times of crisis over recent years. Discussion around the difficulties facing farmers in this sector has heightened of late, with numerous demonstrations taking place as well as calls for action from farmers and their representative bodies.
Spain
The spokesperson for the Government of Castilla-La Mancha, Blanca Fernández, has shown her confidence that the Ministry of Agriculture can lift the immobilization order for sheep in the event of smallpox cases "soon", although she has asked for prudence about it until they see how this matter evolves. To questions from the media at a press conference in Toledo, Fernández pointed out that a "massive" spread of the disease in Castilian-La Mancha farms has been avoided.
Germany
Sheep Population in Bavaria 2022 Down Compared to the Previous Year (Feb 24)
According to the final results of the survey on sheep stocks carried out by the Bavarian State Office for Statistics on November 3, 2022, the number of animals fell to around 254.3K, which corresponds to a decrease of 1.9% compared to the previous year with around 2K sheep-keeping farms listed. Each farm had an average of 127 sheep in 2022, 7 more than in the previous year. The vast majority of these are female sheep for breeding (180.4K animals) and young sheep under one-year-old (66K animals). Female sheep for breeding accounts for more than half (-2.8K animals) of the decline in the total sheep population.
China
Firm Carcass Demand From Uruguay and Chile in the Chinese Market During W8 (Feb 24)
During W8, the carcass demand for lamb was firm in China. Deals for lamb carcasses ranged at USD 4.7K-4.9K/MT, CFR.
Turkey
Ovine Prices Rose, Producers Smiled (Feb 20)
Ovine breeders in Afyonkarahisar are smiling because of the rise in lamb meat prices, while producers who have not been able to meet the cost for a long time are very satisfied with the latest prices. In the Bayat district of Afyonkarahisar, where sheep and small cattle breeding is common, the producers began to smile as the prices of lambs exceeded USD 3.97/kg (TRY 75). Producers, who have been complaining about feed costs for a long time, are happy with the increase in prices. The producers, who stated that last year the price of a kilogram of live lamb was at the level of USD 2.12- 2.38 (TRY 40-45), stated that this year the lambing season started from USD 2.65 (TRY 50) and now it has exceeded USD 3.97 (TRY 75).
Kuwait
Project to Identify Sites for Halal Livestock (Feb 22)
According to informed security sources, a committee formed by the Ministry of Interior, the Environment Public Authority, the Kuwait Municipality, and the Public Authority for Agricultural Affairs and Fish Resources has been preparing a project to identify the sites designated for owners of “halal” livestock (camels and sheep) in the north and south regions of the country. The sources indicated that this project is a step in the right direction for halal owners by placing their livestock in suitable locations, containing them, and preventing them from being stolen or from going onto highways, which can cause serious accidents.
