After three years of healthy returns, lamb prices are taking a nose dive in the sales ring.
Suffering the same economic woes as beef and pork, slaughter lamb prices are generally down across North America, said Doug Laurie of North Central Sheep and Goat Sales at Edmonton.
During the Sept. 10 sale in Edmonton, 95-115 pound lamb bids were down nine percent compared to the August sale. The average price was $81.25 per hundredweight, with a high of $88 and a low of $77.
“We haven’t seen $81 averages on lambs in three years,” said Laurie.
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There was a good volume at 1,800 head but the dollars weren’t there. Of that sale offering, 1,500 left Alberta destined for the eastern Canada restaurant trade.
This sale is a good indicator of the long-term price scale. But with a break-even point of 75 cents a lb., a producer needs a 200 percent lamb crop to make any money.
“Seventy-five cents is a very scary figure for producers,” said Laurie.
Last week Toronto sales were reported at $98 to $107 per cwt. The price spread between Toronto and Alberta is usually about 30 cents a lb.
A weekend sale at Dawson Creek, B.C., drew 5,200 lambs. This was the largest sale offering to date for producers in the area, said sale organizer Kathy Wolsey.
Prices were lower than expected, but complete results weren’t available at press time. Breeding stock remained strong with registered rams bid up to $700.
Canada’s largest lamb feeder, Roy Leitch of Brandon, Man., has been traveling to fall lamb sales and sees plenty of lambs on offer at 1994 prices.
“We got spoiled in the last two to three years when prices were so high,” he said.
He doesn’t see demand shrinking, but because Canadian prices reflect American bids, he anticipates a tough year. American bids have declined by $15 per cwt. this year.
“They had a terrible year. They are lucky to be in business,” said Leitch.
“I don’t know how much lower this is going to go.”
Leitch feeds about 90,000 lambs a year at two lots in Manitoba and Saskatchewan. Most of his production is sold east where buyers in Montreal and Toronto pay excellent money for finished lamb.
