As of July 1, 2024, Canadian farmers are witnessing a downturn in sheep and lamb inventories, marking the second consecutive year of decline according to Statistics Canada.
This trend is reflected across various segments of the industry, with overall numbers falling to just 1.0 million head, a 1.3% decrease from the previous year.
The breeding herd, consisting of ewes and rams, slightly decreased by 1.0% to 627,500 head.
While there was a slight increase in the number of rams, up by 0.4%, it was not enough to offset the decreases in ewes and replacement lambs, which dropped by 0.3% and a significant 5.0%, respectively.
Market lambs also saw a reduction, decreasing by 1.7% to 407,300 head.
Amid these declines, the industry is facing mixed fortunes in terms of market activity. From January to June 2024, sheep and lamb slaughter fell by 3.3% to 377,200 head, remaining above the average of the past five years.
Despite the lower slaughter numbers, producer prices for slaughter lambs hit a record high during this period, surpassing the previous high set in 2022.
On the international stage, the scenario was less favourable. Exports of live sheep and lambs experienced a dramatic decline, dropping by 46.1% to just 6,200 head.
This stark decrease highlights the challenges facing Canadian producers in maintaining their presence in overseas markets. Moreover, there were no imports of live sheep and lambs during the same period, indicating a potential tightening of international supply chains.
These trends underscore a period of adjustment within the Canadian sheep and lamb industry, as it navigates through internal challenges and external market pressures.
Producers are adapting to these changes, focusing on improving the quality and profitability of their herds amidst fluctuating market conditions.
As the industry continues to evolve, stakeholders are will need to closely monitoring these dynamics to better understand their implications on their sheep and lamb operations.