To all those cattlemen and hog farmers who have bled money in past years, Canada's lamb growers have a proposition: Come join the shepherds.
Riding a demographic wave that has increased demand for their product and kept prices high, Canadian sheep producers have set out on a campaign to woo farmers into their fold.
At a time when pork producers reported a $1-billion loss last year, and the Canadian cattle herd has shrunk to a size not seen since 1994, sheep farmers are actively working to make larger an industry so small it supplies less than half of Canada's lamb diet.
“There is plenty of current and future market for everyone,” said Margaret Cook, the executive director of the Alberta Lamb Producers, in a statement Monday. “There is greater risk in continuing to force retailers and consumers to buy import lamb than in having higher production levels of lamb from more local producers.”
Lamb producers are working up a campaign that includes direct mail, training brochures, advertising and government lobbying to help raise the profile of an industry that has quietly maintained healthy margins in recent years.
“It is probably the only livestock right now where there is profit,” said Norine Moore, a 25-year shepherd from Stavely, a small Alberta town 115 kilometres south of Calgary.
Canada's flock numbers 1.1 million, with the largest sheep numbers in Ontario and Quebec. Alberta is third, with about 100,000 ewes.
The industry was hit hard by the mad-cow or BSE scare, which swept sheep producers into its wake when the U.S. closed its border to imports of all Canadian ruminants. Though they are susceptible to similar diseases, sheep don't contract mad-cow disease. Nevertheless, the border closure dropped the price per pound to 40 cents from $1.30. Some producers left the industry.
But prices quickly regained strength, and Canadian lamb, which sells at a premium to imports from New Zealand and Australia, now fetches about $1.20 per pound. Prices have been stable for four years.
Judging by the size of the industry, however, few have noticed. According to Statistics Canada, lamb production has declined from 2005, and the industry has remained static in size over the past two years.
Some lamb farmers have also been reticent to urge others to join their ranks because, like all livestock, prices are cyclical and there is no guarantee the current strength will last. And while shepherds say sheep provide a faster payback than cattle, they are more labour-intensive and are as vulnerable to wolves, coyotes and bears as they were in biblical times. The Canadian Sheep Federation has publicized the fate of one shepherd who lost 150 sheep worth $30,000 to predators.
Still, part of the reason Canadian sheep producers are working to grow their numbers is that they hope to sell to big grocers, who have guaranteed supply requirements they currently cannot meet.
And they point to Canada's import statistics to demonstrate the size of the opportunity. In 2008, Canada imported about 22 million tonnes of lamb. Its domestic production barely hit 15 million.
Add to that the appetite for lamb among new immigrants from countries where it is a meat staple, and farmers say there is abundant room for new producers to enter the market. One report suggested lamb demand will grow by over 40 per cent between 2003 and 2020.
“As the population continues to increase, the market is going to increase,” Ms. Moore said. “I don't think in our lifetime we could ever flood the market, because we will just be replacing the imported meat that's coming in now.”
Canadian lamb does, however, depend on fetching a premium price. New Zealand producers benefit from economies of scale and more temperate weather, which allows them to pasture-feed sheep year-round, minimizing their feed costs. As a result, they can ship lamb to Canada for cheaper than domestic farmers can produce it. Canadian shepherds say their meat is better, and deserves a premium.
And, they say, they are beginning to see flickers of interest in their industry.
“There is definitely a change,” said John Haarman, who has 200 ewes near Lethbridge. “Two or three years ago, it was all grey-haired guys who had sheep. But now we're getting some new young blood in there.”
