W9: Weekly Lamb & Mutton Update
Global
Global Commodity Markets; Rising Challenge (Mar 1)
The tidal wave of demand for sheep meat, and the subsequent surge in pricing seen in 2022, is now being sucked away by weaker economic conditions in New Zealand’s key markets and by increased Australian lamb supplies. The widespread lockdowns in China which reduced sheep meat demand in 2022 and negatively impacted New Zealand export values are over. Modest economic recovery is forecast in China in 2023. Rabo-Research forecasts GDP to increase by 4.2% however, a far cry from the 8.1% growth achieved in 2021. Demand for mutton and lamb is expected to remain weaker in the first half of 2023. In New Zealand’s other key sheep meat markets the UK, Europe, and the US recessionary conditions will continue to impact both food service and retail channels.
Australia
Weekly Sheep Market Wrap (Mar 3)
National trade lamb prices have softened, with a 7% lift in throughput. Wagga-Wagga contributed to 21% of the throughput, with prices softening 43¢ at the sale yard. The demand for heavy lambs with good condition and weight continues as the Heavy Lamb Indicator strengthened 17¢ WoW. The top five contributors, Wagga Wagga, Armidale, Ballarat, and Forbes, were all trading at a premium against the national average and made up 63% of the throughput. Forbes took the largest premium in prices at 830.03¢/kg cwt, 22¢ above the national average, and had their total yards lift by 1.1K head. Forbes lamb yards softened with demand for heavy and extra-heavy lambs remaining high. Lamb yards at Wagga Wagga lifted and buyers were chasing short-skinned lambs with the softening in the skin market. Sheep slaughter continues to climb, reaching 182.0K head in W9. NSW and Tasmania have had large lifts in numbers at 16% and 41% respectively. Lamb slaughter remains steady, only just falling below numbers seen this time last year.
Live Sheep Export Compensation Will Be Up to the New Panel (Mar 3)
Federal Agriculture Minister Murray Watt talked down the prospect of compensation for businesses affected by the proposed live sheep export phaseout. Mr. Watt on Mar 3 announced that consultation is now underway to inform how and when the Albanese Government will fulfill its election commitment to phase out live sheep exports by sea. An independent panel will lead the consultation process, chaired by the former chief executive of the Murray Darling Basin Authority and senior public servant, Phillip Glyde. The panel also includes Western Australian agriculture expert Sue Middleton, former Federal Minister Warren Snowdon, and former RSCPA CEO Ms. Heather Neil.
Live Sheep Trade Exploring All Options to Fight Export Ban in Australia (Mar 3)
Australia’s live sheep export sector is prepared to fight the Federal Government in the courts to maintain the trade, according to exporter leader Mark Harvey-Sutton. The Australian Livestock Exporters Council chief executive officer told Sheep Central that the industry is exploring all options to fight the government’s intention to phase the trade out. When asked if the closed loop defense used to continue the cattle trade could be used by the sheep trade, Mr. Harvey-Sutton said the Exporter Supply Chain Assurance System is in place in all live export sheep markets.
New Zealand
Upward Trend of New Zealand’s Sale Yard Prices of Meat for W8 (Mar 3)
The average local slaughter and export price trends for W8 are upward in New Zealand for W8 vs. W7 stood as follows:
- Lamb NI, 18kg - USD 4.39/kg (NZD 7.05/kg) vs. (USD 4.36/kg (NZD 7.00/kg)) + 0.7% marginal increase
Export Lamb Flaps, China - USD 6.49/kg (NZD 10.42/kg) vs. (USD 6.39/kg (NZD 10.26/kg)) +1.5% increase.
United Kingdom
Rising Imports of Sheep Meat Alarm Even More UK Farmers (Feb 27)
Sheep farmers from Wales are the latest to complain about the impact of free trade deals on meat sales. The bulk of the fresh lamb product being eaten in the UK is still home-grown product. But last year's trade figures reveal they have little to fear from Australia's yet-to-be-signed pact with the UK government. Australia has slipped to third place behind New Zealand and Ireland as major importers of sheep meat to the UK. The Republic of Ireland has remained in the European Union and has kept out of these post-Brexit trade deals. Overall sheep meat imports to the UK were up 17% for 2022 to 54.3K MT worth just over USD 410.08M (A$607M) which is what has alarmed the Welsh farmers. Australia's two major sheep meat markets are the US and China, worth more than a billion dollars each. The UK struggles to enter Australia's top 10 export markets for volume or price. The big issue for the Welsh is a large number of frozen legs of lamb from New Zealand, which has a similar trade agreement to that of Australia.
AHWNI Concerned About Sheep Scab Levels in Northern Ireland (Feb 28)
Animal Health and Welfare Northern Ireland (AHWNI) said it is concerned about the levels of sheep scabs being diagnosed in Northern Ireland’s sheep flocks. Dr. Stewart Burgess, leader of the sheep scab research group at Moredun Research Institute in Scotland, said that blood samples show flocks may have been infested with sheep scab mites for a prolonged period. This means that a high percentage of animals from these flocks are likely to have been infested, he said. Burgess is currently leading scab control projects in Northern Ireland, England, and the Western Isles of Lewis and Harris and has said there are several hotspots in Northern Ireland with high risks of significant spread of scab. Sheep scab Clinical signs of sheep scab may develop over several months, AHWNI said, however, animal health and welfare can become compromised at an early stage. Transmission of the disease may occur directly, with mites spreading from animal to animal, or indirectly via contaminated items like scanning trailers, wool left on fences and hurdles, or clothing.
UK Sheep Meat Trade Increased in 2022 (Feb 28)
Trade figures for the final month of the year showed fresh and frozen primary sheep meat imports at 2.4K MT (product weight), 13% above November’s volume, but 39% (1.5K MT) below December 2021. Lower imports from New Zealand drove the overall decline, continuing the trend from November. For the full year of 2022, imports reached 54.3K MT, up 17% (7.7K MT) compared to 2021. A 12% increase in the average price of these shipments brought the total value to USD 364.12M (£342M), up USD 86.24M (£81M) YoY. A near four-fold increase in shipments from Ireland was the main driver of growth, with Ireland overtaking Australia as the second-largest supplier of sheep meat to the UK in 2022.
In UK, Welsh Lamb Meat Exports Hit USD 182.59 in 2022 (Mar 2)
The value of lamb and beef exports from Wales hit the USD 266.17M (£250M) mark in 2022, according to the analysis of HM Revenue and Customs (HMRC) trade data by Hybu Cig Cymru, Meat Promotion Wales (HCC). Welsh lamb exports were worth USD 182.59M (£171.5M) in 2022, with exports to the largest European partners, France, Germany, and Belgium, all up on 2021 figures, with the French market worth an estimated USD 81.98M (£77M) on to Welsh sheep farmers.
Texel and Hampshire Breeders Finalize Import of Semen From Great Britain (Mar 2)
In search of consolidating the high genetic quality and productive capacities, the sheep breeders imported semen from the Texel and Hampshire Down breed, coming from Great Britain, being the second purchase made from that market. The first was carried out in 2022 when the sheep industry celebrated the historic importation of sheep embryos from Texel and Suffolk, which arrived in Paraguay after two years of joint work by the public and private sectors. The arrival of the consignment of semen from breeds related to the sheep industry to the country was through some cabins. The former president of Texel and one of the importers, José Ruiz Díaz, mentioned that they had been working for years to open up these purchases.
Ireland
11% Increase in Number of Sheep Slaughtered in Ireland (Feb 28)
The number of sheep slaughtered in January increased by 10.8% compared to the same month in 2022, according to the Central Statistics Office (CSO). The data published on February 27 on livestock slaughtering shows that 251.3K sheep were processed in the first month of the year. This is up from the 226.9K sheep which were slaughtered in January 2022. According to the CSO, almost 3.2M sheep were processed last year, which was an increase on the 2.97M slaughtered in 2021.
Sheep Trade Saw Hogget Price Rises by 10C/KG in W9 in Ireland (Feb 27)
In W9, sheep trade saw hogget prices increase by 10c/kg at most factories after last week’s price reduction. The general run of hogget prices in W9 was USD 6.39/kg (€6) ‘all in’ with ewe price at USD 3.19- 3.51/kg (€3.00-€3.30), depending on the outlet. Prices at the higher end of the market were at USD 6.60/kg (€6.20) in general for hogget, with some deals being secured by producers, particularly where larger numbers were on hand.
The Irish Cattle and Sheep Farmers’ Association (ICSA) urged sheep farmers to hold back lambs from meat factories on February 28. The call came ahead of an ICSA protest aimed at demanding improved conditions for sheep farmers. The protest, which will take place outside the Dáil, will kick off at midday on Feb 28 and continue until 2:30 p.m., before moving to the Department of Agriculture, Food and the Marine (DAFM) headquarters at Agriculture House on Kildare Street. 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.
ICSA Protesters Say Sheep Sector in Ireland Is on Its Knees (Feb 28)
The government has to either support the sheep sector or watch it close its doors, the president of the Irish Cattle and Sheep Farmers’ Association (ICSA) said at a protest outside the Dáil on February 28. Dermot Kelleher said the sheep sector is “on its knees” and the ICSA is looking for all parties inside the Dáil to stand behind sheep farmers. The Minister for Agriculture, Food and the Marine, Charlie McConalogue, must either close down the sheep sector in Ireland or support it, the ICSA president said. Protesters demanding improved conditions for sheep farmers and a support package for the sector are set to move to Agriculture House on Kildare St. in Co. Dublin on Feb 28 afternoon. Discussion around the difficulties facing sheep farmers has heightened of late, with numerous demonstrations taking place, and calls for action from farmers and their representative bodies.
The Irish Natura and Hill Farmers’ Association (INHFA) has called on the government to deliver an “emergency aid package to safeguard the Irish sheep sector”. The farming organization presented a letter detailing the support it believes is needed for the sheep sector to Minister for Agriculture, Food and the Marine, Charlie McConalogue on February 27. The minister was attending the annual general meeting (AGM) of Donegal INHFA which was held in Letterkenny. The letter, which came from the INHFA president Vincent Roddy and the association’s two vice presidents; Pheilim Molloy and Micheal McDonnell, highlighted the significant challenges facing the sheep sector, including the fall in lamb prices coupled with an increase in feed costs and other expenses. The INHFA said that an emergency aid package should include a payment of USD 37.26/ewe (€35) for primary producers based on the 2022 Sheep Census.
Deputy Calls on Minister to Establish a Sheep Forum in Ireland (Mar 1)
An Independent TD has urged Minister for Agriculture, Food, and the Marine, Charlie McConalogue, to establish a dedicated sheep forum. The call from Sligo-Leitrim TD Marian Harkin followed a protest outside the Dáil on February 28 by members of the Irish Cattle and Sheep Farmers’ Association (ICSA). Protesters demanded improved conditions for sheep farmers and a support package for the sector which has been grappling with high input costs and low prices for months. ICSA president Dermot Kelleher said that the Irish sheep sector is “on its knees” and appealed to all politicians to stand behind farmers. Speaking in the Dáil after meeting the farmers at the gate of Leinster House, Deputy Marian Harkin called on the minister for agriculture to immediately put an emergency aid program in place for the sheep sector.
Spain
Asaja Castilla-la Mancha Is Moderately Optimistic Regarding the Evolution of Sheep Pox (Feb 27)
The vice president of Asaja Castilla-La Mancha, Manuel Torrero, has been "moderately optimistic" about the evolution of sheep and goat pox in the region, whose expansion caused the immobilization of the sheep and goat livestock in the provinces of Albacete, Ciudad Real, Cuenca, and Toledo from February 6. Asaja Castilla-La Mancha, Torrero commented on the content of the second meeting of the sheep and goat pox monitoring committee in the region, which was held on Feb 24 and in which decided to make some measures more flexible, such as that animals can be slaughtered in any slaughterhouse in Spain until now they could only go to slaughterhouses in Castilla-La Mancha or that farmers with their pastures can take their animals out to graze. Torrero specified that this relaxation of measures will be published in the Official Gazette of Castilla-La Mancha in a resolution that is expected to come out on February 28.
More Than 350K Cows and Sheep Will Be Vaccinated Against Bluetongue in Galicia From March 7 (Mar 4)
The Xunta will start a vaccination campaign against bluetongue on March 7, an animal disease of which four outbreaks have recently been detected in Galicia, on farms in Castro Caldelas and Sarreaus (in the province of Ourense), and in Fornelos Montes and As Neves (Pontevedra). It is planned to immunize more than 350K specimens: 265K cattle and 87K sheep. The vaccination campaign will be carried out in the areas included in the declared restriction area, which includes all farms in the provinces of Pontevedra and Ourense, as well as those located in the regions of Sarria, Chantada and Terra de Lemos- Quiroga, in the south of Lugo.
China
More Than 3K Imported Breeding Sheep Landed in Yinchuan, China by Special Plane (Feb 27)
On February 22, after a 14-hour flight across the ocean, the first batch of more than 1.7K breeding sheep arrived at Yinchuan Hedong International Airport at around 20:00. It is reported that more than 3K breeding sheep were imported this time. On the 23rd, it was airlifted to Yinchuan by chartered plane in two batches. The main breed is "Saaneng", which has stable milk production performance, high milk yield, excellent milk quality, and high nutritional value.
Strong Demand for Uruguayan Lamb From the Chinese Market in W9 (Mar 4)
During W8, deals for Uruguayan lamb carcasses for up to 24kg were priced at USD 4.7K-4.9K/MT CFR. In W9, due to the strong demand for sheep meat, the price stood at USD 5.05K-5.1K/MT CFR.
Bulgaria
Livestock Breeders Protest in Bulgaria (Feb 27)
For St. George's Day and Easter, Bulgarian sheep breeders have the opportunity to offer Bulgarian lambs to the market. "We have warned our control bodies to do their job so that we do not mislead consumption again and people do not buy imported and low-quality lambs. If this control is not allowed, it will again be a slap in the face for Bulgarian citizens….," urged Boyko Sinapov. The situation in the livestock sector is deplorable because not only animal feed is becoming more expensive, but everything. “We have an agreement with the Ministry of Agriculture that an extraordinary Advisory Council on Livestock Breeding will be held, if they try to delay this week as well, we will be forced to protest”, said Boyko Sinapov, the chairman of the United Bulgarian Association, in an interview with BGNES breeders'.
Russia
From March 1, 2023, a Number of Veterinary Rules Will Come Into Force in the Russian Federation (Feb 28)
From March 1, new veterinary rules for keeping sheep and goats, approved by order of the Ministry of Agriculture No. 774, will come into force in Russia. Special requirements will be imposed on large sheep and goat breeding enterprises. Thus, the territories of enterprises where more than 1K heads of small cattle are kept should be divided into zones. In addition to the production area where animals are housed, separate walking areas, a veterinary and prophylactic station with a room or place for storing veterinary drugs, as well as separate areas for quarantine, storage, and processing of manure and disposal of bio-waste should be provided. Sheep and goats entering such farms must be kept in quarantine for at least 21 days. In addition, the new veterinary rules established requirements for livestock housing, walking areas, disease prevention, and diagnosis. Norms of watering and feeding are also established depending on the condition and age of the animals.
