Sheep Industry News November 2021

petitive alternative to consumers, but is also possible that stronger cull ewe prices and drought conditions across the West are prompt ing greater harvest rates. WHOLESALE MARKET HOLDS The cutout value less an industry average processing and packag ing cost in September averaged $627.51 per cwt., about steady with August and 72 percent higher year-on-year. The lamb primals ranged from 62 to 76 percent higher year-on-year. The loin bounced around $500 per cwt. for years prior to CO VID-19, then took off exponentially, more than doubling in 18 months. The loin, trimmed 4x4, averaged $1,051.86 per cwt. in Sep tember, up 3 percent monthly and 62 percent higher year-on-year. The 8-rib rack, medium, averaged $1,410.99 per cwt. in Sep tember, down 2 percent year-on-year. The shoulder square-cut saw $548.50 per cwt. in September, also down 2 percent monthly. The leg, trotter-off, averaged $603.67 per cwt., down 1 percent monthly. Ground lamb saw $789.97 per cwt. in September, down 8 percent monthly and 35 percent higher from a year ago. RETAIL PRICES HIGHER Part of the success of lamb demand at retail has been in devel oping value-added products that make at-home lamb preparation more convenient. In an Oct. 1 podcast for Meat + Poultry , Anders Hemphill, vice president of marketing and brand strategy for Supe rior Farms, said the company offers a pre-seasoned garlic-rosemary leg steak that has done well under a private label for Wal-Mart. It also sells a pre-seasoned lamb shank that has sold well at Costco in Northern California. Overall, lamb at retail remains strong although there is some leveling off as foodservice comes back online, Hemphill said.

sensitivity.” Thus, demand might be fragile in the coming months for American fall wool sales and sales of remaining wool in storage. On Oct. 7, the Australian Easter Market Indicator was Australian 1,339 cents per kg clean, or U.S. $4.42 per lb. clean. In U.S. dollars, the EMI was up 34 percent year-on-year, 55 percent higher than the COVID-19-low of $2.86 per lb. clean, and yet 36 percent lower than the record high enjoyed in 2018 at $6.86 per lb. Recall that the Australian wool market faced a declining price trend pre-COVID. Although global wool supplies remain tight, a multitude of demand factors dragged prices lower. By some accounts, the wool market remains in an eight- to 10-year cycle and wool prices will rebound in coming years, but the current price outlook is concerning. One demand factor that might be at play in the international wool market is the increased concentration of raw wool demand and pro cessing in the hand of a single buyer – China. In theory, as market concentration increases, the ability for price influence also increases. What happens in China affects the global wool market. In Septem ber, AWI reported that many wool mills in China were without reli able power with more frequent and more severe electricity rationing and thus Chinese production interruptions constrained demand, likely depressing Australian wool prices. ABC News Australia reported that there is a renewed effort in Australia to develop a domestic scouring plant. Queensland Wool Processors chairman John Abbott said in early October, "If you are subject to the whims and problems of an overseas manufacturer, then you will suffer the consequences." Some of the competitive advantages that China once enjoyed – including cheaper labor, cheap electricity and lower environmental standards – are disappearing according to economic consultant Jonathan Pavetto.

Shoulder blade chops saw a featured-weighted average of $6.99 per lb. in early October, up 24 percent from a year ago. Rib chops saw $14.99 per lb., up 23 percent; the leg (shank/ butt) averaged $8.56 per lb., 72 percent year-on-year, and leg cutlets saw $12.99 per lb., up 28 percent. Since the summer of 2021, Australian wool prices have been declining. In October, Australian Wool Innovation Ltd. reported that buyers in the Australian market were op erating under “extreme price WOOL MARKET SLUGGISH

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