Outlook Upbeat for Sheep Industry for 2014
January 10, 2014
As 2013 wraps up for sheep producers, they begin to look toward 2014 and what the year potentially will hold for the industry.
Peter Orwick, the executive director of the American Sheep Industry Association, which serves as a trade association for sheep farmers and represents 46 state associations, noted that the lamb market is looking positive for producers.
Around Labor Day, he said, the lamb market took a serious jump--up 80 cents a pound over the following eight weeks. The rise in prices, Orwick added, came at a vital time because producers needed the increase to cover the cost of production, which had risen over the past few years.
"At Labor Day, there was an all-new crop of lambs," Orwick said, adding that the sudden positive change in price actually more than covered the price of production for market lambs.
Orwick noted that another driving factor helping producers with production costs is 2013's excellent corn crop. During 2012-2013, due to the drought, there was a huge increase in feed costs, as well as inputs.
"What one was paying for hay and small grains were at market highs too," he said.
Orwick added that in 2013 the market overcorrected.
The executive director stressed that he does believe that had the sheep industry not seen a turnaround in live market lamb prices in September and October, that the industry would have lost some of its producers.
Reprinted from AgriNews