Group says rising imports are hurting U.S. sheep producers and reducing investment across the industry
The future of the U.S. sheep industry is at the center of a new trade dispute as producer organization R-CALF USA seeks federal action on rising lamb imports. The group has submitted a prehearing brief to the U.S. International Trade Commission, arguing that increasing levels of imported lamb meat are causing serious harm to American sheep producers.
The filing was submitted as part of a Section 201 safeguard investigation, a process that examines whether imported products are injuring domestic industries. R-CALF USA believes that imported lamb is creating economic pressure throughout the U.S. sheep production chain, from ranchers and growers to feeders and processors.
According to the organization, reduced sales of American lamb can affect every stage of production. When imported products capture a larger share of the market, processors may purchase fewer animals from feedlots. Feeders, in turn, may buy fewer lambs from ranchers, creating financial challenges for producers across the industry.
Data included in the filing points to significant growth in lamb imports over recent years. Imports measured in carcass-weight equivalents increased by 14.3% between 2021 and 2025. Although imports briefly declined in 2025, they returned to growth during the first seven months of 2026, increasing by another 5% compared with the same period a year earlier.
Most imported lamb entering the United States comes from Australia and New Zealand. Together, the two countries accounted for more than 99% of imported lamb in the category examined in the report. R-CALF USA argues that this growing supply has intensified competition for domestic producers already facing market challenges.
At the same time, the organization says the U.S. sheep sector has been shrinking. Breeding sheep numbers have declined, and the number of farms raising larger sheep flocks has dropped sharply over the past several decades. Industry leaders say these trends raise concerns about the long-term capacity of domestic sheep production.
Producer experiences included in the filing provide examples of these challenges. Some operations reported losing reliable buyers, while others faced rising transportation costs and fewer marketing opportunities. Several producers also described reducing purchases because of uncertainty in the marketplace and difficulties selling finished products.
Additional information came from a survey of sheep growers and feeders conducted during 2026. Many respondents said buyers referenced imported lamb products when negotiating prices or reducing purchases. Survey participants also reported lower marketing volumes and reduced business activity compared with previous years.
The survey further highlighted concerns about investment in the sheep sector. Many producers indicated they had postponed or canceled expansion plans and other business investments. The total value of delayed or canceled projects reached nearly $10 million among the surveyed operations, reflecting uncertainty about the industry's future.
While acknowledging some recent positive developments, including stronger lamb prices and improved profitability in certain areas, R-CALF USA argues that these gains do not tell the full story. The organization believes that higher prices alone cannot offset declining sheep numbers, reduced production capacity and weakening business relationships throughout the supply chain.
“The sheep industry is the canary in the coal mine for America’s cattle producers,” said R-CALF USA CEO Bill Bullard. “Higher prices alone don’t reverse the loss of ranchers and breeding herds. The cattle industry is following the same path, and we need to recognize the warning.”
A key argument in the filing is that trade officials should consider the impact of imports on every part of the domestic production chain. The organization says growers, ranchers and feeders play a critical role in supplying animals to processors and should be included when evaluating industry injury.
The issue will receive further attention when the U.S. International Trade Commission holds an injury hearing in Washington, D.C. Industry participants, trade officials and other stakeholders are expected to review evidence and consider whether import levels are causing or threatening serious injury to the domestic sheep sector.
The outcome of the investigation could have important implications for sheep producers across the United States. If trade officials determine that imports have contributed to industry harm, the case could move forward to the next stage, where potential relief measures may be considered. For many sheep producers, the decision could influence the future direction of the industry and its ability to remain competitive in the years ahead.
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