It’s hard to change what you don’t measure, but it’s even harder to change what you can’t measure.
August saw the release of the 2017 Sheep Industry Economic Impact Study. This was the most recent such study since 2011. The study reported very encouraging impacts of the U.S. sheep industry, but it also noted that sheep and lamb producers face a lot of unknowns.
According to the study, the industry knows “that every dollar of sheep output adds $2.87 to the economy.” This is the difference of the value of the sheep industry versus its monetary contribution. The study also found every job in the sheep industry supports another 0.88 jobs in the wider economy. These additional jobs are mostly through sales of sheep-sourced products.
“As small business operators, we have long understood the importance of animal agriculture to the U.S. economy,” said Peter Orwick, executive director of the American Sheep Industry Association, in the group’s announcement of the study.
“Not only do sheep producers purchase feed and agricultural equipment, they are engaged in every aspect of commerce in their communities. By purchasing U.S. lamb and wool, consumers are supporting jobs and families throughout the nation.”
However, the report also noted the modern U.S. sheep industry comes with a lot of unknowns. Sheep producers are increasingly moving into non-traditional markets for both lamb and value-added wool products. Production and sales data are not collected reliably on these markets and products, if at all.
“This impact analysis captures sheep production activity and value-added activities where it can most accurately estimate value,” the study explained in its introduction. “Many valueadded enterprises such as the domestic wool hosiery market and the retail lanolin market for cosmetics, for example, were not captured in this study for lack of data.”
This dynamic makes the conclusions of the study likely underestimated, it noted. “How much of an underestimate is unknown.”
Another area of the sheep and lamb industry lacking data is “the non-traditional lamb market.”
“We don’t have really strong information about how many lambs are really going through non-traditional channels,” Megan Wortman, executive director of the American Lamb Board, told WLJ. In defining what “non-traditional” means in this context, she said it was more than what many people think.
“I know a lot of people jump to ethnic minority population sales, which is a lot of it, but there’s just been tremendous growth in what we call direct marketing.”
Not only does this direct marketing mean direct contact with the consumer through things like farmer’s markets, but also through other means.
“Slowly but surely, less and less lambs are going into traditional sales to the packers and to the feedlots and to the auction markets,” Wortman explained. “Producers are becoming more savvy about retaining ownership of those animals all the way through to the marketing directly, whether that be ethnic minority populations or traditional American consumers through farmers markets, chefs, and Whole Foods.”
She told WLJ that “nontraditional” can also refer to unusual or “new” breeds. The study noted that hair sheep are a growing portion of the nation’s flock. Hair sheep do not grow wool and don’t need to be sheared, making them easier for producers focused on meat production.
“Dorpers and Katahdin [both hair breeds] were ranked first and second in terms of new registrations and transfers of breeding stock by The Banner Sheep Magazine,” the study noted. It pointed out later that “neither the industry nor the government formally track the inventory of hair breeds.”
Expanding demand
“This impact analysis reinforces the significance of economy-wide benefits of expanding lamb, wool, and lambskin demand,” the study summarized. WLJ talked to Wortman about efforts to do just that.
“Consumption is less than 1 pound per year and we’re less than 1 percent of total fresh meat sales,” she said, calling lamb the underdog compared to other proteins. “If we’re going to build demand, we just really have to build awareness.”
She called lack of consumer awareness one of the biggest barriers to increasing demand. Price was the next barrier.
The 2014 “American Lamb Industry Roadmap” listed a number of objectives to increase demand for lamb. The creation of an “American Lamb Brand” was one such objective. The brand would be used to distinguish American lamb products meeting certain quality standards from imported product. Wortman said the industry shifted away from this idea since then, however, recognizing the challenges of a certification process and the need to improve consistency and quality first.
“What has ended up taking off more at retail in terms of premium programs are Antibiotic-Free and Grassfed,” she told WLJ.
Wortman pointed out that the Lamb Board’s small promotional budget is another barrier to increasing demand.
“We have less than $2 million, so you won’t see advertising like ‘Beef, it’s what’s for dinner.’” She explained that the Lamb Board has had to focus on specific markets where lamb is known and consumed. These are mostly on the coasts in places with big, diverse populations. “Lamb Jams” that connect producers, consumers, retail and food service members, and the media have been a helpful tool in such markets.
“We’re also very much focused on trying to attract a younger, new lamb consumer,” she added.
“They are adventurous eaters that are looking for bold, interesting flavors. They’ve eaten out a lot. They’ve traveled. They’re really interested and excited about lamb. We’re really looking to make our brand and messaging resonate with a younger target audience.” — KERRY HALLADAY
