Sheep Industry News August 2022

Market Report TYLER COZZENS, PH.D.

Livestock Marketing Information Center

Drought Creating Poor Lamb Conditions

M uch of the Western United Stats has been Department of Agriculture's National Agricultural Statistics Service on range and pasture conditions, more than 30 per cent of the Western region has been rated as poor and very poor conditions in recent weeks. Compared to a year ago, conditions have improved from the 60 percent rating of pastures at poor and very poor. For the Great Plains region, pasture conditions have steadily im proved from 60 percent rated poor and very poor to recent weeks rated just less than 30 percent. In the Southern Plains, range and pasture conditions rated as poor and very poor remain elevated at around 50 percent. Last year, conditions were below 20 percent. Persistent drought and marginal pasture conditions are proving to be a challenge for producers. SHEEP AND LAMB MARKET SITUATION Since the start of the year, Colorado lambs on feed have been tracking well above the prior year. Each month this year has seen lambs on feed at levels that have not occurred plagued by drought conditions for almost three years. According to data released by the U.S.

in nearly four years. On July 1, the number of lambs on feed in Colorado was 103,032 head – a 74-percent or about 44,000-head increase from a year ago – and well above the fi ve-year average of about 77,000 head. Th last time lambs on feed were higher for the month of July was 2018, which was 107,311 head. Th higher lambs on feed is likely due to drought related issues and poor pasture conditions push ing more lambs on feed. Additionally, producers are likely seeking to put a little more weight on the lambs to maximize profi s from the elevated lamb prices. Th is can be seen in recent weekly slaughter and dressed weights data. Weekly sheep and lamb slaughter started the year below typical levels for the fi rst quarter. In early April, weekly slaughter levels followed the typical seasonal pattern with increased slaughter rates to fil demand for the Easter holi day. Th is was evident by the peak weekly slaughter level so far this year of 41,921 head the fi rst week of April. During the month of April, weekly slaughter averaged about 40,000 head with total slaughter for the month at 197,800 head. As expected, weekly slaughter in May and June fell from the April highs with weekly averages at about 32,000 head. During the peak slaughter levels in April, lamb and year

ling dressed weights steadily declined from about 70 pounds down to about 60 pounds during the course of four to six weeks. Th decline in dressed weights follows the typi cal seasonal pattern that occurs during the Easter holiday as producers market more lambs to meet rising demand. Typically, dressed weights trend lower through the third quarter before rising in the fourth quarter. Since early May, weekly lamb and year ling dressed weights have been averaging about 70 pounds, a counter seasonal move and higher than the 63-pound average during the same period last year. In June, higher weekly dressed weights have partial ly off et the lower weekly slaughter levels to keep lamb production at or slightly higher than year ago levels.

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