Sheep Industry News July 2022

After a loss of 14 Australian cents per kg clean the week of May 25 and a loss of 6 cents per kg clean the week of June 1 with the market closing at 1,414 Australian cents per kg clean or U.S. $4.59 per lb., the EMI increased 24 cents to close at 1,438 Australian cents per kg clean or U.S. $4.71 per lb. in week 49 of the current market year on June 8. This was the highest weekly value posted since March 2020. At the time this article is printed we will be through the final week of the marketing year and starting on the next year. The Australian EMI report showed prices on an upward swing across all micron levels for the week ending on June 10. Price increases ranged from U.S. $0.15 per lb. to U.S. $0.18 per lb. for micron levels between 17 and 22 as demand for fine wools remains strong this year. Micron levels of 26 and 28 saw the smallest gains of U.S. $0.02 per lb. and U.S. $0.03 per lb., respectively, as the demand for coarse wool remains sluggish. There is much uncertainty with the current economic en vironment and its potential impact on consumer demand for wool. The exchange rate between the Australian dollar and the U.S. dollar will continue to influence the wool market as the international economy adjusts to rising inflation. If price inflation continues as forecasted, consumers' will ingness to pay for wool products could change as any slow down in the world economy could also cause a reduction in the demand for wool.

Again, your individual break-even will be different from these estimated values. You can utilize the templates provided in the U.S. Baseline Lamb Cost of Production Analysis to deter mine your own actual cost of production. Once you have this number, you can then calculate the price you would need to break-even on your own lambs. However, this analysis is useful in helping us understand that there has likely been at least a 13 percent increase in the price needed to break-even. The three-market average price for the first week of June 2022 on 60 to 90 lb. feeder lambs was $248.07 per cwt. This was down from the last week of April high of $315.38 per cwt. As of the June 6 forecast, the Livestock Marketing Informa tion Center was still projecting a strong fall with prices for the three-market average in Quarter 3 ranging from $272 to $279 per cwt. and Quarter 4 ranging from $270 to $278 per cwt. While these projections remain above the estimated break even prices, it is also evident that with the rising cost of production there is less room for error. Producers certainly will need to keep a close eye on their costs to maintain positive returns. WOOL OUTLOOK After a couple of weeks of losses in the Australian Eastern Market Indicator in May, the EMI strengthened in early June.

Producers Needed For Wildlife Services Advisory Committee

T he American Sheep Industry As sociation is accepting applications from producers who would like to be nominated to serve on the National Wildlife Services Advisory Committee. Interested parties should submit the nec essary background information form to ASI Executive Director Peter Orwick at peter@ sheepusa.org by July 15. The advisory committee provides guid ance from diverse stakeholders interested in the Wildlife Services program – includ ing, agriculture, wildlife management, animal welfare, and public health and safety interests. Annual meetings of the NWSAC allow the public an opportunity to participate and provide input to the Secretary of Agricul

ture on overall policy and guidance for the operation of the WS program, resources to accomplish the WS mission, impacts of depredating wildlife, public health and safety problems created by birds and other wildlife, and research activities and priori ties to address wildlife damage management needs. The committee also serves as a public forum enabling those affected by the WS program to have a voice in the program's policies. The committee was created by the Secretary of Agriculture under the Federal Advisory Committee Act, and members are appointed for a two-year term. Commit tee members are chosen to represent the diverse interests in the WS program and the

multitude of industries to whom we provide services. For the background information form, visit USDA.gov/sites/default/files/ documents/ad-755.pdf. Source: USDA/APHIS/WS

OPP

New Test — New Strategy No more bottle lambs!

www.OPPsociety.org 952-955-2596 hjneaton@gmail.com

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