The forces of demand and supply continue to tussle, with strong demand seemingly the victor. Wholesale lamb and live lamb prices saw an upward trend in the first few months of 2017 after a couple years of downward pressure. Lower sheep inventory has translated to steady to lower domestic production year-to-year, yet increasing import volume has led to higher domestic lamb availability. While lamb supplies increase, demand remains strong.
Sheep and lamb inventory in the U.S. contracted by 2 percent in 2016 to 5.2 million head. In 2014 and 2015 inventory expanded; however, sheep numbers were down 3 percent in five years and down 15 percent in the 10 years since 2006. Due to increased imports, lamb and mutton consumption increased 5 percent in 2015 and 7 percent in 2016.