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Optimism in the lamb market

“The Alberta sheep and lamb sector is facing smaller inventories, fewer breeding and replacement stock and anticipated lower lamb crop for 2024,” says Ann Boyda, provincial livestock market analyst with the Alberta government. “However, optimism exists for continued easing of production costs and stronger lamb prices. The industry still faces challenges due to the declining flock numbers and consumer concerns of high food prices, but demand remains stable.”

Sheep and lamb inventory
According to Statistics Canada’s total sheep inventories released on February 23, 2024, January 1, 2024 Canadian inventories of sheep and lambs were down 2.2% over January 1, 2023 to 828,300 head. The sheep breeding herd declined 2.3% to 599,300 head, with ewes down 2.4%, rams down 0.84% and replacement lambs down 3%. Market lambs and lambs under one year declined 2% since January 1, 2023. 

Statistics Canada reported Alberta total sheep and lamb on-farm of 170,100 head, 1.96% lower than last year January 1. The greatest decline of 2.71% was reported for replacement lambs. The lamb crop (lamb under one year) was down 2.22%. Ewe and ram inventory were down 1.8% and 1.9%, respectively, for the same period.

Alberta has risen to the second largest sheep and lamb producing province, just surpassing Quebec by 1700 head on-farm as of January 1, 2024. Ontario still holds the top position with 261,400 head on-farm. Except for Nova Scotia and New Brunswick, all provinces reported a decline in inventory over the last year. Statistics Canada attributes the decrease to lower prices and increased feed costs.

Slaughter
Slaughter volume in 2023 at federally inspected facilities for West Canada, including Ontario, is reported by Statistics Canada at 86,692 head, a 0.2% increase over 2022 following 3 years of consecutive decreases in slaughter numbers. The West Canada slaughter volume represents 51% of the total slaughter in federally inspected establishments. Slaughter volume through 2023 followed typical seasonal trend associated with holidays and special religious events.

Prices
Prices for market lamb at select Alberta auctions were estimated to range between $209.29 to $276.14 per hundredweight year-to-date (February 23, 2024). These prices were on average 20-26% higher than the same period in 2023. The average prices in 2023 were 8.2-12.5% lower than the 5-year average of $260.92 per hundredweight high and $209.01 per hundredweight low.

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