Sheep Industry Economic Impact Analysis - April 2008

Sheep industry production spurs a ripple effect throughout the economy, generating additional economic activity that was estimated using the IMPLAN modeling software and dataset. An estimated $509 million in lamb, mutton, wool, sheep milk production, and breeding stock at the producer level supports an additional $1.3 billion in economic activity for a total of $1.8 billion. The sheep industry supports backward-linked industries that supply sheep production. It also supports local businesses through expenditures of sheep-industry generated income on goods and services. This study estimated a second model in order to quantify the value added to sheep products that were not captured in the first model. The sheep industry produces many and varied products from lamb chops served in fine dining restaurants to lanolin. Estimates of retail lamb and wool, wholesale pelts, variety meats, meal, tallow, and retail sheep cheese sales revealed that $768 million in production generates an additional $1.4 billion in multiplier effects, summing to a total economic impact of $2.2 billion. When the interactions and effects of including the government and investment – and not just households – in the model, the total output effect increases to $3.2 billion at the farmgate and $4.5 billion at the wholesale and retail level.

Revised March 2011

Sheep industry production spurs a ripple effect throughout the economy, generating additional economic activity that was estimated using the IMPLAN (Impact Analysis for Planning) modeling software and dataset. An estimated $486.5 million in lamb, mutton, wool, sheep milk production, and breeding stock at the producer level supports an additional $1.2 billion in economic activity for a total of $1.7 billion. The sheep industry supports backward-linked industries that supply sheep production. It also supports local businesses through expenditures of sheep-industry generated income on goods and services. This study estimated a second model in order to quantify the value added to sheep products that were not captured in the first model. The sheep industry produces many and varied products from lamb chops served in fine dining restaurants to lanolin. Estimates of retail lamb and wool, wholesale pelts, variety meats, meal, tallow, and lanolin, and retail sheep cheese sales revealed that $785.6 million in production generates an additional $1.9 billion in multiplier effects, summing to a total economic impact of $2.7 billion.