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News and Comments:
Breeding Program Updates
In 2025, progress with the Wiltshire breeding
program was mixed. I made the somewhat difficult decision to cull
some AI-born ewes that were not meeting my standards. These culls
resulted in the flock being at 26% Wiltshire at the end of 2025 - up
only slightly form 2024.
However, important progress was made. We
added the following to the flock in 2025:
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(1) 75% ram (Line
2)
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(3) 75% AI-born
ewe lambs
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(3) 5/8 AI-born ewe lambs
-
(9) 50% ewe lambs
(7 AI-born, 2 natural born)
-
(9) 3/8 ewe lambs
-
(15) 1/4 ewe lambs
For 2026, (22)
first-generation, AI-born Wiltshire ewes were inseminated with Generation
2 semen. Hopefully, we will get a nice crop of 75% ewe and ram
lambs from these.
The Charollais program is also underway.
We now have (6) AI-born ewe lambs as well as a 75% ram lamb. For
2026, we inseminated 32 ewes with Charollais semen. This will
nearly complete the first generation semen, leading to a good crop of
50% rams in 2026 as well as some 75% Charollais ram lambs being
available in 2027.
I discontinued using Clun Forest rams at the end of the 2025 breeding
season. I plan to use Wiltshire and/or Charollais rams to breed
ewe lambs going forward. Cluns are very good for breeding ewe
lambs, but I think the higher percentage Wiltshire rams and finer-boned
Charollais will perform just as well in terms of lambing ease.
Market Commentary - 2025 and 2026
The lamb market was strong in 2025. Imports were down about 8% and
domestic production increased about 1%. Slaughter weights continue
to decline, which is great to see.
Looking forward to 2026, I
expect that lambs prices to remain similar to 2025. Cold
storage levels remain in check and domestic production is not likely to
increase significantly. Imports are expected to remain flat of even
decrease slightly.
It is my opinion that it is critical to the US sheep industry's success
to continue to improve the quality of our lamb. I believe that the
two most critical factors are genetics and proper feeding/marketing.
Lambs need to be meaty with limited fat and bone. Breeds should be
selected that can meet these requirements. In addition, lambs
should be harvested at about 6 months or less.
For 2025, the average weight of US lamb will be around 120 lbs.
This is a big improvement from an average weight of 147 lbs in 2012.
For reference, lambs under 80 lbs or over 110 lbs are usually discounted
in major lamb producing countries. Clearly, more work is needed to
improve the quality and consistency of US lamb. For that
reason, I'm leaving the 2022 Market Commentary below on my website - to
help people better understand the lamb market dynamics.
Market Commentary - 2022
The lamb market crash of 2022 was the worst
I've seen in more than 30 years of raising sheep. Prices plunged
about 60% in just a couple of weeks time. The crash was so abrupt
that it was impossible to avoid devastating losses. Record high
feed prices further increased losses.
What happened? While live lamb prices did decline globally, the drop
was particularly steep in the US market. The global drop can be
attributed to a slowdown in discretionary spending due to high
inflation. But the severe collapse in prices paid to US producers
has deeper, more sinister roots.
There are several factors that make American lamb more vulnerable to
downturns. Generally, American lamb is more expensive than
imported lamb. This was not a key factor in the 2022 crash.
In fact, the USDA reported that American lamb meat sold at or
near record prices. As I write this, the Carcass Cutout Equivalent
price of a lamb carcass is $4.65/lb. At a 50% yield, that would
translate to about $2.33/lb live weight! Meanwhile, the price paid
for live lambs is about half this price, resulting in record profits for
packers.
How can this situation happen in a free market system? Shouldn't
competition limit packer margins? The problem is that the lamb
market is not a functioning free market. There are only a few
packers that operate within the traditional lamb market in the US.
These packers own many feedlot lambs as well. Trouble started in
2021, when lamb prices reached very high prices on light supplies.
Large feedlots, including packers, raced to acquire a supply of lambs,
driving prices even higher. Then, as the market began to recede,
they had tens of thousands of old crop lambs that had very high
break-even costs. To pay for the losses, they reduced buying new
crop lambs and pushed their old crop lambs through the system. The
goal was to restrict supply of American lamb meat for sale to shore up
the price of these old crop lambs. As a result, producers of new crop lambs subsidized the failed
gambles of these large feedlots and packers. Any remaining losses
were shouldered by the taxpayer, with Section 32 purchases of
lamb/mutton to be distributed through food programs.
All of this has happened numerous times in the 30+ years I've been
involved in the sheep industry. And each time it has the same
result - bankrupted producers and loss of market share to imported lamb.
How is it possible that imported lamb continues to displace American
lamb, despite being shipped from half a world away? Imported lamb
has 3 advantages over American lamb:
1. Higher quality. Lamb from every country in the world,
except the US, is quality-controlled to ensure that it is indeed lamb
and not mutton. In the US, lamb packers have negotiated a system
with the USDA that allows them to sell more than 50% of the supply as
"un-graded lamb". That is, more than half of lamb leaving packing
facilities is not graded at all, because it is yearling and mutton being
sold as lamb. The remaining US lamb that is graded, is graded
against much looser standards than New Zealand, Australia, Canada and EU
and would classify as Yearling. In summary, American lamb quality
is generally inferior to imported lamb because large feedlots and
packers refuse to acknowledge the international consensus on lamb
definition and quality standards.
2. Lower cost. Australia and New Zealand are almost perfect
places to raise sheep. The climate is more suitable and there are
less predator concerns. In addition, the cost of living in
these countries is significantly lower than in the US.
Transportation costs offset these advantages some.
3. Higher supply. NZ has about 10 times as many sheep as the
US and Australia has about 25 times. These countries are set up to
export lamb in high volumes. Combined with stringent quality
standards, they are formidable competitors.
How can US producers navigate this difficult environment? Firstly,
we must voluntarily produce lamb meat that is competitive with imported
lamb. While large-framed American breeds can yield very high
quality meat, packers will generally mix them with old crop lambs and
yearlings. As a result, the producer does not get paid for the quality
they produce. It is my opinion that producers should aim to
produce lambs of similar quality to imported lamb. These lambs are
generally less than 110 lbs live weight and very well muscled. Its
very unlikely that packers will voluntarily pay producers for such high quality
lambs. So, our best bet is to sell these lambs direct to consumers, sales
barns or other non-traditional slaughter channels.
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