Sheep industry future looks bright, producers say

For the Capital Press

SUNRIVER, Ore. -- The market for lamb and wool will continue to strengthen next year, members of the industry were told at the recent Oregon Sheep Growers Association annual meeting.

Brian Phelan, director of procurement for Superior Farms in Dixon, Calif., said total lamb availability continues its downward trend, opening opportunities for producers. The number of sheep slaughtered through Nov. 13 at federally inspected facilities was 1.94 million head, down 2 percent from a year ago.

"We're seeing less lamb available every year," he said.

Imported lamb has decreased, partly because of the lower exchange rate. Yet, demand remains high.

Yield grades 2 and 3 are still the most popular, while many of the fat lambs at grades 4 and 5 are bringing 60 to 65 cents a pound more today than last year.

"We're killing lambs at a lighter weight because the supply is so tight," Phelan said. The demand from ethnic and alternative markets is for smaller lambs.

Supplies of wool worldwide are low. U.S. military procurement is a bright spot in the wool market, said Art Swannack, representative of the American Sheep Industry Association.

"We have the machinery now to complete the Super Wash process that takes the barbs off the wool so it can be washed and dried without shrinkage and makes it feel like cotton," he said.

Paul Lewis, who breeds White Dorpers in Bonanza, Ore., reminded the group that the downside to high demand was that producers weren't growing their flocks. "We need to replace the ewe lambs," he said.

Phelan agreed but said the feeder market now is stronger than the replacement ewe lamb market.

Lewis gave a presentation on using sheep performance records to improve the bottom line. "What would 2 pounds per lamb mean? What would shipping one week earlier mean?" he asked.

He explained expected breeding values, or EBVs, which measure potential on selective traits such as post weaning weight. Using EBVs in ram selection eliminates environmental factors and measures genetic potential as it impacts the market value of lambs.

"Too often we select rams by price, looks, because we go to the same sale every year or maybe just to get the ewes bred. Why wouldn't you demand to know what a stud ram is going to produce?" he asked.

For example, a ram that will produce on average 8 kilograms higher than comparable ones could represent a $1,000 increase in income for 100 lambs selling at $1.40 a pound.

Lewis recommends that stud breeders enroll their flock. The National Sheep Improvement Program website has details. Once the system is set up, it's a matter of updating the data.

"Trust me," Lewis said. "Everything now is based on pounds of weight. That is going to change. The packer is soon going to pay you on the value of the carcass, not on pounds."

Reed Anderson, president of the OSGA, and Margaret Magruder reported on campaigns to promote lamb by the industry-funded American Lamb Board.

While the overall budget of $1.8 million is small compared to beef and pork, the board's creative efforts have garnered increased exposure for lamb.

Campaigns have included sold-out Lamb Jam Tours where local chefs create and sample lamb dishes that are paired with wines, retail demos, nutrition education, recipe contests and culinary education.

The website www.americanlamb.com has numerous tools for retailers and consumers. "Use these resources, because you're paying for them," Magruder said.

The focus is on making lamb more appealing, less mysterious and educating the public about how to cook it. With slogans such as "Lamb is the new pork" and "Move over ham, here comes lamb" and promotions on Facebook and Twitter, the promotions are attracting a new generation of lamb eaters, Magruder said.

Although about a third of consumers have never eaten lamb, research shows an increase in frequency of use and an attitude shift that it's not just for dining out. About 60 percent of lamb is sold to the retail market and 40 percent to food service.

When asked about using some American Lamb Board money towards increasing flock size, Anderson replied, "We still need the exposure. We must protect and let people know about our product. In essence, we have competing needs."