The American Sheep Industry (ASI) submitted a letter to USDA’s Agriculture Marketing Service, voicing their concerns on the food supply as it relates to agricultural commodities and food production.
The letter emphasized that the sheep and lamb market is highly concentrated and influenced by imported product, which makes up more than 50 percent of lamb sales in the U.S. and is sold at prices lower than the domestic cost of production. The loss of the second largest lamb packing plant, Mountain States Rosen, exposed “serious deficiencies in the industry’s supply chain, namely the lack of adequate packing and fabrication capacity in the event of a market disruption,” the letter read.
Until a new plant was up and running, producers and feeders struggled to find packing capacity and were forced to sell at lower prices, delay processing, or ship lambs long distances, according to ASI.
“Grants and guaranteed loans to these small- and mid-sized facilities to invest in fabrication facilities and encourage the entry of additional packing entities would be tremendously helpful in enhancing the geographic distribution of the industry’s infrastructure,” the group wrote.
ASI also addressed the lack of adequate price and market data reporting under USDA, calling reports “frequently unavailable and limited” due to confidentiality rules.
In addition, the group noted how the domestic wool trade relies on the availability of wool sacks, which are solely manufactured in China. The cost to produce an effective alternative is prohibitive and they have been subject to tariffs and supply shortages, which has created barriers in the wool market, the letter read.
The sheep and lamb industry relies heavily on H-2A guest workers, especially in western states. However, ASI said increased minimum wage requirements are raising the cost of production beyond the costs for international competition and “out of reach of consumers.”
“Utilizing [Consolidated Appropriations Act of 2021 and American Rescue Plan Act of 2021] resources allocated to incentivize additional packing and fabrication capacity, develop workforce capabilities, and support climate change research within the USDA/ARS portfolio would greatly strengthen the commodity and food supply chains,” ASI concluded. — Anna Miller, WLJ managing editor
