Glacier FarmMedia – Sheep prices continue to rise, with several cultural and religious observances that feature lamb consumption dominating the spring calendar.
According to Simon Atkinson, Manitoba Sheep board chair and western director, the current prices are also much higher than they’ve been in quite a while.
“We’re, right now, pretty much record highs, similar to the cattle,” he said.
Read Also
Alberta cattle loan guarantee program gets 50 per cent increase
Alberta government comes to aid of beef industry with 50 per cent increase to loan guarantee program to help producers.
“But it’s only been the last couple of months in the sheep business that it’s really hyped up.”
There’s been a steady rise in the market since November, with prices expected to hold steady until the end of the spring holiday season.
Easter and the Muslim festival of Eid are the two main drivers for the lamb market, pushing prices high.
Easter markets are usually a peak, with customers looking for premium lambs that are near three months old and about 60 to 70 pounds. This year, the Easter prices were even better than the previous record highs of 2021.
Four years ago, 60 to 80 lb. lambs were averaging $371 per hundredweight. Last year, for the same weight group, the average was $295.86 per cwt.
Earlier this month, 60 to 80 lb. lambs were ranging from $385 to $440 per cwt.
This spike in prices typically lasts a few weeks and then re-adjusts after the holidays. However, Atkinson expects that when things adjust, they’ll still be high.
“There’s a shortage of finished lambs right now, too, (the) heavy lambs,” he said.
“So I think going through into the summer here, for sure, we’re going to see a strong market continue.”
The reduction of heavy lambs comes from low sheep numbers in Canada, which has significantly decreased in the last few years.
In the last year alone, the Canadian sheep flock has decreased by 16,200 head.
For example, the Manitoba flock was 75,600 head as of Jan. 1, which was a slight decrease from 77,700 in 2024, but a large drop from 81,000 in 2023.
Atkinson believes contributing factors have been high cattle prices, drought, disease and predation issues.
If a sheep producer owns a mixed operation that also has cattle, Atkinson said it’s likely the producer will sell the sheep to eliminate the hassle. They will focus on the higher priced cattle, particularly in a drought situation.
Cache Valley virus, a mosquito-borne illness, has hit this year’s lamb crop fairly hard. With Easter being later this year, commercial producers didn’t face huge financial losses because they were able to capitalize on strong markets as an offset. However, lambs born in December and January, such as purebreds, are expected to have much lower numbers this year.
“I’m hearing a lot of producers saying they’ve had a really good lambing since they got past that,” Atkinson said.
He also noted the current year’s lamb crop is just beginning to come to market, so it’s too early to say definitively whether further effects will be seen.
A larger issue for producers, and likely what’s pushing many out of the business, is predation. With changes in weather and losses of wildlife habit, coyotes, wolves, large cats and other predators take what they can. For sheep producers in particular, the loss is high and compensation often isn’t granted.
Predation loss claims are only processed if a carcass can be found. Lambs are nearly never found if taken by a predator, and with large predators, even sheep sometimes aren’t found.
Sheep producers don’t expect to be hit as hard by tariffs as other livestock sectors because they don’t export product. The entirety of Canada’s lamb production makes up just 37 per cent of Canadian lamb consumption. The remaining 63 per cent is imported from countries such as New Zealand.
There is some worry when it comes to animal welfare supplies such as medications, minerals and supplements and the effect that shortages could have on cost of production. Atkinson said potential cost increases are worrying when the only cost decrease in the last year was on feed — simply because there was a strong hay crop last year.
The other area of concern is if U.S. tariffs drive down retail prices of beef and pork, taking lamb prices with them. At this point, it’s hard to predict, he said.
Atkinson hopes that the current market cycle is here to stay, or at least linger for a little while. It would ease some of the worry about cost of production and economic stability for producers. He also pointed out that it just might help get more people into sheep farming.
“Hopefully, we’ll see these stronger prices last for a few years, but one never knows,” he said.
“I mean, these prices have definitely put some optimism back into the industry. Producers are a lot more optimistic seeing these prices.”
