Coronavirus effects leave sheep ranchers reeling; lamb and wool markets crippled

Mike Curuchet is surrounded by hundreds of ewes and their lambs, talking over the bleating of the young animals, many of which are only hours old. The sun has been out all morning, warming the air sufficiently to cause Curuchet to shed his jacket and the lambs to frolic playfully. Heading into the spring season, Curuchet was forecasting the best year for lambs he's had in a while. In fact, as recently as February, the Livestock Marketing Information Center was projecting strong lamb prices (both feeder and slaughter) through the first three quarters of 2020. Though the February outlook did note that the coronavirus – at that time primarily concentrated in Wuhan, China – could cause “uncertainty,” a modern, federally inspected lamb packing plant in Colorado (Colorado Lamb Processors near the town of Brush) was scheduled to open in late spring, and the American Lamb Board was in the midst of a multiyear marketing campaign to increase consumption. But by the time Curuchet began lambing in mid-March, it was clear that the coronavirus was going to impact both wool and sheep markets as the coronavirus disrupted supply chains and consumer habits. The wool market is heavily dependent on exports; seven of every 10 pounds of wool produced in the United States found their way to a container headed overseas in fiscal year 2017, according to the U.S. Department of Agriculture. And over 50% of lamb consumed in the United States is eaten at a restaurant, Curuchet said, and that industry has experienced more than a 75% decline in sales since the middle of March. “I talked to a guy this morning; he's trying to sell some fat lambs now, and they're down 40% since this whole thing started," Curuchet said. “They're built up now with a lot of lambs on feedlots, and there's just no demand for lamb. There are gonna be some tough times without a doubt.”...MORE