Sheep Industry News May 2022

Market Report TYLER COZZENS, PH.D.

Livestock Marketing Information Center

Sheep Numbers Affect Wool Production

T he Jan. 1 U.S. Department of Agriculture/National Agricultural Statistics Service Sheep and Goats report highlighted the continued downward trend for American wool production with 2021 at 22.451 million pounds – down 3 percent from the prior year. The lower wool production is due to a 2 percent decrease in sheep shorn to 3.2 million head, while the yield was down slightly from the prior year at 7 lbs. per head. Let's look at wool from a supply and utilization perspec tive. Supplies in 2021 started the year with beginning stocks of 21.2 million clean pounds which was the highest in five years. Production was 11.9 million clean pounds last year, down 3 percent with imports at 3.8 million clean pounds. This gave a total wool supply of 36.9 million clean pounds, up 12 percent from last year and the highest in three years. On the utilization side of the balance sheet, wool mill use was estimated at 10 million clean pounds. Exports were 6.7 million clean pounds in 2021 – 2.3 million clean pounds above 2020. Total use for the year was 16.7 million clean pounds, which left ending stocks at 20.2 million clean pounds

– the second highest level since 2016. Overall, wool produc tion and use have been trending generally lower and will likely continue to do so given the decline in sheep numbers. Focusing on state level wool production, eight states ac counted for nearly two-thirds (64 percent) of total production in 2021 (Calif., Colo., Idaho, Mont., S.D., Texas, Utah and Wyo.). California and Colorado both produced nearly 2.2 million pounds last year, which was down 10 percent and 5 percent, respectively, from 2020. Wyoming and Utah posted declines of 9 percent and 6 percent, respectively, with pro duction of 2.1 and 2.0 million pounds. California, Colorado, Wyoming and Utah – the only four states with wool produc tion of more than 2 million pounds – accounted for 38 percent of total production in 2021. Ten years ago, there were six states (Calif., Colo., Wyo., Utah, Idaho and Texas) that had wool production or more than 2 million pounds. Wool production in South Dakota rose 1 percent to more than 1.7 million pounds, the only top producing state to post an increase in production last year. Declines of 9 percent and 8 percent were seen in Montana

and Idaho, respectively, to 1.5 and 1.4 million pounds. The remaining states all saw wool production figures below one million pounds and most recognized a decline from a year ago. WOOL MARKET UPDATE The Australian Eastern Market Indicator averaged just more than 1,400 per cents kg clean in March, down 2 percent from February’s 1,428 average, but an 8 percent in crease over the prior year’s monthly average of 1,295. The first two weeks of April, the Australian EMI moved lower with the most recent week at 1,369 per cents kg clean, which is the lowest weekly price so far this year. Since the start of 2022, the EMI has averaged about U.S. $4.64 per lb. (Aus. $6.37 per lb.), this is higher

6 • Sheep Industry News • sheepusa.org