Lamb is a small component of the overall U.S. animal protein market, but one that is rapidly growing in importance. Approximately 300 million pounds of lamb are sold annually in the United States, with the majority of the product imported from Australia and New Zealand. In the most recent USDA Census of Agriculture, last conducted in 2017, there were 101,387 sheep operations (both wool and meat) in the U.S., an increase of 15% from five years prior.
Similarly, in a 2018 research study, 68% of respondents indicated a preference for lamb, up from 40% in 2011. Though about half of Americans have never tried lamb, acceptance of the meat is increasing. In the same survey, only 15% of consumers felt the product was too difficult to prepare, down from 45% in 2011.
Domestic Sheep Demand
Premium prices for U.S. raised lambs are driven primarily by the demand from ethnically-diverse customers in urban areas, who account for more than 50% of domestic consumption. Typical lamb consumers are older, more affluent individuals living in metropolitan areas. Live lambs are shipped to markets around the country where they are sold directly to consumers or harvested by specialty processors. During the COVID-19 pandemic, the lamb market avoided supply chain bottleneck issues faced by other livestock markets using large scale processors, many of which were temporarily shut-down.
Retail sales of lamb accounts for about 60% of the market and the Northeast, Southeast, and California account for almost three quarter of retail demand. Demand for ground lamb also continues to grow, representing about 10% of the retail market. According to the Lamb Board, in 2018, lamb was featured on the menus of 25% of casual dining establishments. The fine dining segment is smaller, but 62% of those restaurants had lamb-related items.
Texas Sheep Production
Dorper Lamb raised by Capra Foods
Though lamb is produced in every state, Texas leads the country in lamb production, followed by California and Colorado. Texas raised-lambs have commanded premium prices in the industry. The ecology of many parts of Texas is ideal for lamb grazing, and many native plant species are found palatable by Texas sheep. Most lambs raised in Texas are smaller-framed hair varieties, such as Dorper lamb. The Dorper breed originated in South Africa and is unique in the sheep world in that it was bred from hair sheep for meat instead of wool. Dorper lamb is a specialty product, developed over many years, to provide the best taste, quality, and tenderness unlike commodity lamb programs built on wool production. Texas sheep ranchers are increasingly using innovative techniques to include regenerative grazing and animal welfare certifications.