SASKATOON – Short supply and the upcoming Easter holiday have pushed lamb prices to unusually high levels, said the manager of the Saskatchewan Sheep Development Board.
“The demand seems to be greater than supply,” said Colleen Sawyer of Saskatoon.
Sheep prices were so low that when prices began to increase, producers got rid of their lambs at a lighter weight than normal. Now there’s a shortage of finished lambs, she said.
According to Alberta Agriculture statistics, 18 percent fewer lambs were slaughtered in 1994 than in the previous year. That’s the lowest federally inspected slaughter since 1980.
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Prices for finished lambs are steady at $1.10 per hundredweight, about 20 cents above the normal 87 to 90 cents at this time of year.
Because of the shortage, Sawyer predicted prices would stay high for some time.
“I think it will hold well into the summer when it does traditionally have a drop,” she said.
Ron Gietz, Alberta Agriculture market analyst said U.S. lamb prices are heading higher and Canadian prices tend to follow.
When Sawyer negotiates a final price with her eastern Canadian wholesalers in the next few days, she expects to receive at least $1.50 liveweight for the 50 lb. Easter lambs. Easter is the peak market for lambs.
Wool market up
The wool market is also on the increase, said Eric Bjergso, general manager of Canadian Co-operative Wool Growers.
Lower global wool stocks and higher consumer demand for wool seems to be pushing the price higher, he added.
A drought in Australia and forecast of lower world production in all major wool-producing markets have also helped fuel the upward trend in prices, he said.
