Lamb is uniquely positioned to offer retailers, foodservice operators and export markets a product that is delectable, nutritious and without question creates a special eating experience. No doubt the short supply-driven market conditions of mid 2010 and 2011 drove lamb prices to historical highs and substantially damaged demand. However, the market underwent a significant correction in 2012 and today offers a solid value proposition. Supported by price inflation of beef and a slightly improved economy the opportunity to rebuild demand is now.
2013 will be a pivotal year for lamb, as the industry will be challenged by drought conditions covering in excess of 50% of the U.S., increased feed costs, shrinking supply and aggressive competition from Australian and New Zealand imports, all of which pressures the production and processing sector’s infrastructure. However, industry growth and upside resulting from an increased demand can have a strong positive influence on all sectors of the industry.