State of the Ontario Sheep Industry Report - 2004

Table of Contents

1. Sheep and Lamb Inventory - Canada
2. Sheep and Lamb Inventory - United States
3. Market Prices - Ontario
4. Market Prices - United States
5. Slaughter - Canada
6. Slaughter - United States
7. Imports into Canada - Dressed Meats
8. Exports From Canada - Dressed Meats
9. Imports into the United States - Dressed Meats
10. Imports of Live Sheep and Lambs info Canada from the United States
11. Exports of Live Sheep and Lambs to the United States
12. Lamb Consumption
13. Pelt Market
14. Wool Market
15. Sheep Flock Improvement Program
16. Dairy Sheep Industry in Ontario
17. Imports of Sheep Milk Cheeses
18. Purebred Registrations

Sheep & Lamb Inventory - Canada

According to the Statistics Canada Livestock Survey of January 1, 2004, the number of sheep and lambs on Canadian farms was estimated at 997 thousand head; an increase of 2.2 percent compared to a year ago. As of January 1^st, Canada's flock consisted of:

• 622.2 thousand breeding ewes
• 27.7 thousand breeding rams
• 94 thousand replacement lambs
• 743.9 thousand market lambs.

Western Canada

Significant decrease in flock size occurred in Alberta, partly due to the drought conditions in 2002 and the United States border closure to live animals in 2003. Alberta's breeding flock size dropped by 8.6 percent, while breeding flock size increased in Saskatchewan by 3.6 percent; in Manitoba by 8.3 percent and in British Columbia by 7 percent.

¹Breeding Flock includes rams, ewes and replacement lambs but not market lambs.
Source: Statistics Canada.

Ontario

The January 1^st inventory indicates that Ontario's total flock size has increased by 10 percent to 270 thousand head in 2004, compared to 2003's inventory of 243 thousand head. Ontario has the largest portion of the national breeding flock at 28.7 percent, which represents 213,500 head of ewes, rams and replacement lambs. This represents a 1.7 percent decrease in the past year. Ontario's breeding flock has increased by 29.5% since January 1, 2000.

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Quebec

For the third year in a row, Quebec has the second largest breeding flock (200 thousand head) in Canada, accounting for 26.9 % of the national flock. Quebec's breeding flock increased by 6.3 percent compared to January 1^st, 2003.

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Sheep & Lamb Inventory - United States

The sheep flock in the United States continues to decrease in size. According to the USDA, the sheep and lamb inventory on January 1, 2004 totaled 6.09 million head, 3 percent below January 1, 2003. Breeding sheep inventory at 4.48 million head on January 1, 2004 was 4 percent below January 1, 2003. Market sheep and lambs (including newborn lambs) at 1.61 million head were 2 percent below last January. The US breeding flock consists of 3.6 million ewes one year old and older, 189,000 rams one year old and older, and 691,000 replacement lambs (including newborn lambs).

The 2003 lamb crop in the United States of 4.12 million head, was down 4 percent from the 2002 lamb crop of 4.36 million head and established a new record low. The 2003 lambing rate was 109 lambs per 100 ewes one year and older, unchanged from 2002.

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Market Prices - Ontario

Average monthly prices received for 80 to 94 pound lambs during the first six months of 2003 in Ontario were significantly stronger than those received during of the same period in 2002. Effect of the US Canada border closure became evident during July and August, when prices fell below those received in 2002, and remained lower for the remainder of the year, as is shown in the graph below.

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Although the yearly average price for 80 to 94 pound lambs in 2003, at $120.32 per hundred pounds, was slightly higher than 2002's yearly average price, it remains 1.9 percent lower than the 5 year average price. Prices for lambs in the lighter weight categories showed similar trends over the 2003 year, while yearly average prices for lambs heavier than 95 pounds were 1.5 and 17.3 percent below those of a year ago. The price for cull sheep was relatively strong through 2003, with an average yearly price of $47.16 per hundred pounds, or 5.9 percent above 2002's price of $44.74. See tables 3 and 4 for more details.

Table 2 compares prices received for 80 to 94 pound lambs over the past 5 years in Ontario, Quebec, Alberta and the United States.

Source: Red Meat Division, Agriculture and Agri-Food Canada

Volume of sheep and lambs sold through Ontario's 14 major markets in 2003 (191,116 head) was slightly lower than 2002's volume of 192,712 head. Although total volume was down, increases occurred in the heavier weight categories with a volume increase of 4.3 percent for lambs 80 to 94 pounds, and an incredible 74.8 percent increase in the "greater than 110 pounds" category. A slight increase of 1.6 percent occurred in the "95-109 pound" category.

In 2003, live sales of sheep and lambs through auction markets represented 71.6 percent of the sheep and lambs slaughtered in Ontario plants (federal and provincial).

The Forward Contracting Program, co-ordinated by the Ontario Sheep Marketing Agency, is now entering its seventh year. In 2003 9,559 lambs were sold through the Forward Contracting Program. Average carcass data in 2003: weight 54.5 pounds, muscle score 3, index 97.5, price per carcass $129.60, and tissue depth 15.3 mm. For more information on the Forward Contracting Project, contact the Ontario Sheep Marketing Agency.

The impact of the discovery of BSE in one cow, reported May 20^th 2003, did not appear to immediately affect lamb market prices, but by mid-July, an effect was evident. Typically, prices for most lamb categories begin to fall during the April to May period, and start to recover in September to October period. In 2003, average prices for lambs in the 80-94 lb. category dropped steadily through August, with August's monthly average price lower than that in 1995. In the 95-109 lb. category, prices dropped below 2002's in week 30, and have remained below 2002 average prices to date. In the +110 lb. category, along with lower prices, volumes were 130 per cent higher for the period May to August 2003, compared to the same period last year (2284 head vs. 993 head). See Table 3 for monthly data.

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Market Prices - United States

Lamb prices in the United States were higher through all of 2003 compared to 2002. Market lamb price for the entire country in 2003 averaged $91.51 per hundred pounds, an increase of 27.3 percent over the average price of $71.85 in 2002. According to the USDA report, Agricultural Prices 2002 Summary, New England had the highest yearly average price in 2002 at $110.00 per hundred pounds, followed by New York at $92.10, and Pennsylvania at $90.00, while Oregon and Illinois had the lowest average price at $US69.00 per hundred pounds.

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Slaughter - Canada

All regions of Canada showed increased slaughter of sheep and lambs during 2003. Total national slaughter (federal and provincial inspected plants), rose to 508,614 head, an increase of 9.4 percent over 2002's slaughter volume of 464,726 head.

Compared to 2002, the number of sheep and lambs slaughtered in 2003 in the western provinces increased by 7.4 percent (to 98,143 head), 10.9 percent in Ontario (to 268,689 head) and 8.2 percent in Quebec (to 130,850 head). As shown in the graph above, Ontario continues to have the largest combined slaughter, accounting for 52.8 percent of all sheep and lambs slaughtered in Canada, while Quebec makes up 25.7 percent, the western provinces 19.3 percent and the Atlantic provinces 2.2 percent of the total sheep and lamb slaughter.

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Federally inspected slaughter can be sold throughout other provinces in Canada and exported to international markets. Of the total sheep and lambs slaughtered in Canada in 2003, 33 percent were federally inspected. This is a decline from 44.7 percent federal slaughter in 1997. The rest were slaughtered in provincial facilities, meaning the animal can only be sold within the province it was slaughtered in.

Ontario's federally inspected slaughter in 2003 (6,654 head) accounted for only 2.5 percent of the total sheep and lamb slaughter in the province, down from 16.4 percent in 1997. This compares to 65.6 percent of Quebec's slaughter being federally inspected, and 72.6 percent of the western provinces' slaughter in 2003.

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Slaughter of sheep and lambs in Ontario has been increasing steadily over the last five years. In 2003, a total of 268,869 head were slaughtered in federal and provincial inspected facilities. This represents an increase of 39.5 percent compared to 1999, as is shown in the accompanying graph.

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National average carcass weights increased by 0.9 pounds in 2003 to 48.9 pounds compared to 4.8 pounds in 2002. Carcass weights were the lightest in Quebec, at 44.1 pounds, and heaviest in Alberta at 55.2 pounds. Ontario's average carcass weight was 48.2 pounds in 2003 compared to 46 pounds in 2002.

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Slaughter - United States

In 2003, commercial sheep and lamb slaughter in the United States totaled 2.98 million head, down 9.4 percent from 2002, with 94.1 percent comprised of federal inspection. Lambs accounted for 94.9 percent of the slaughter at 2.66 million head. The average live weight increased 1 pound from 2002 to 134 pounds. Average carcass remained unchanged at 68 pounds.

Table 5 lists the major sheep and lamb slaughter regions within Canada and United States. Ontario ranks as the fourth largest slaughter region, while Quebec and Alberta rank seventh and ninth respectively.