USA market for imported lamb

USDA released their detailed US slaughter figures . These show that US commercial sheep and lamb slaughter has trended downward since 1990. A record low commercial sheep and lamb slaughter of 2.16 million head was recorded in 2011. Since 1990, commercial sheep and lamb slaughter has declined 60 percent. Commercial average sheep and lamb live weights steadily increased from 1990 to 2000 and have leveled off since that time. A record high of 143 pounds was recorded in 2012. In 2015, commercial sheep and average live weight was 136 pounds, 11 pounds higher than 1990. This has provided an opportunity for expanded lamb imports, particularly from Australia.

For the period to Oct 21 2016, Australian lamb imports have increased 12% 42,651 tonnes. Overall USA lamb imports including New Zealand have increased 9%. Food service demand is where the Australian product shines and prices have been on a steady uptrend since the early part of 2016. The cutout below indicates potential margins of up to $70 AUD per head on heavy Australian lambs tailored for the USA market.