U.S. Trade

With per capita lamb and mutton consumption fairly stable, imports have offset the decline in domestic production. Lamb and mutton imports, which currently account for more than one-third of U.S. consumption, are nearly all from Australia (about 60 percent) and New Zealand (about 40 percent).

In addition to importing meat products, the United States also trades live animals with its North American trading partners. Live imports are primarily from Canada, while exports go primarily to Mexico. The United States has a greater demand for lamb than for mutton and thus imports Canadian lambs. Mexico has a greater demand for mutton and thus imports U.S. cull ewes (older, less productive females).

U.S. sheep and lamb inventories stabilized in 2004 and even grew somewhat, a result that will eventually lead to increased lamb and mutton production. Lamb and mutton trade, mainly with Australia and New Zealand, had been on an upward trajectory, with imports from both countries continuing to make up a growing share (over 45 percent) of total U.S. lamb meat consumption. Canada supplies less than 1 percent of U.S. imports; imports of meat from Canada are restricted to animals up to 1 year old at slaughter. The age limit is associated with the minimal-risk rule affecting Canadian meat trade due to BSE concerns.

U.S. live sheep trade occurs mainly within North America. Since BSE was detected in Canada, all Canadian live sheep imports to the United States have been banned along with cattle and other ruminants. Live imports from Mexico are permitted but are minimal; Mexico still allows U.S. sheep exports, primarily culled ewes.

Imports of lamb and mutton in 2004 were 181 million pounds, up almost 8 percent from a year earlier. Much lower than expected first-quarter 2005 imports, about 34 percent below a year earlier, led to a reduction in the import forecast for the year. The relative prices of imported lamb related to exchange rates between exporting countries and the United States may have been a factor contributing to the reduced imports. Imports for the entire year are forecast at about 177 million pounds, down just over 2 percent from 2004.