August 2016Tri Lamb AUS/NZ

Tour

A presentation to ASI 2017 State Executive/Contact Meeting

By Ryan Mahoney, 2016/17 Tri Lamb Young Leader

AUS and NZ are the world leaders in lamb and wool production

• Innovation – DEXA, Ram Select, New Zealand Merino, Omega-3

• Marketing – Money they have it, we don’t. US lamb sales are up 6% a year over the last three years. All of that increase has been captured by imported lamb.

• Industry Support – Vaccines, handling equipment, shearing crews, Lamb Ex

The Evil Imported Lamb• Does the US loose market share when imports increase?

• Why are exports important?

• How are we currently evaluating the status of US Exports to Canada, Mexico, and Caribbean? Other?

International Beef Primal Cut Utilization

35%Chuck Rolls, Clods

5-10%Ribeye

>70%Short Ribs, Short Plate

Northern Asia

Top Butt

Worldwide

5-10%

90% Rib Finger, SkirtHanging TendersNorthern Asia

>60% Goosenecks

10-20% Rounds

Mexico,Canada

Shortloin

Note: when open, Russia was also a top market for rounds

Northern Asia, Mexico

Hong KongTaiwan

KoreaJapan

Netherlands

20%Butt

Northern Asia

40%Picnic

33%Leg/Ham

Mexico, Canada, South

America

International Pork Primal Cut Utilization

20%Loin

Northern Asia

Northern Asia, South America,

Mexico, Canada

5%Belly

Northern Asia

Note: when open, Russia was also a top market for hams and picnics

Japan

KoreaHong Kong

Panama

Dominican Republic

GuatemalaHondurasPhilippines

U.S. Lamb and Variety Meat Imports

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

Metric Tons

Others

New Zealand

Australia

Source: Global Trade Atlas

291296

318

348353 352

357362 364 363

356353

346340

337331

324

317

303

288

269

241236 235 235 236 237 237 235

240 242 244 242

267

286292

299303 304 302

299 300 301

313

324

332 332 330324

314

307304

301 302

311314 314 315

200

220

240

260

280

300

320

340

360

380

Jan

Feb

Mar

ch

Ap

ril

May

Jun

e

July

Au

g

Sep

t

Oct

No

v

Dec Jan

Feb

Mar

ch

Ap

ril

May

Jun

e

July

Au

g

Sep

t

Oct

No

v

Dec Jan

Feb

Mar

ch

Ap

ril

May

Jun

e

July

Au

g

Sep

t

Oct

No

v

Dec Jan

Feb

Mar

ch

Ap

ril

May

Jun

e

July

Au

g

Sep

t

Oct

No

v

Dec Jan

Feb

Mar

ch

Ap

ril

May

Jun

e

July

Au

g

Sep

t

Oct

No

v

Dec

2011 2012 2013 2014 2015

75-85# Price75-85

2011-2015 Monthy Value in US dollars for 75-85# carcass

Excerpts from Sheepmeat Council of Australia’s 2015-16 Annual Muster Report

• “The US is Australia’s highest value export market for lamb. …

• “As lamb is a niche product in the US, the major issue is competing for shelf space in supermarkets with other protein sources. SCA and MLA have developed a relationship with both the New Zealand and US industries (TriLamb Group) to work together to extend the attributes of lamb(healthy and nutritious) with some generic promotion.

• “It is estimated that around 70% of people in the US have never tried lamb. Domestic meat dominates shelves and menus (50%for lamb), so gaining attention and support as an imported product can be challenging. …

• “The other challenge confronting imported product is the view that ‘local’ equates to ‘more sustainable’ and there is a strong belief in ‘food miles’ in the US.

• “SCA reps…traveled to Mexico to meet with Mexican producers to sign a Memorandum of Understanding to recognize the common goal of building Sheepmeat production globally. Mexico currently represents a comparatively small volume of export market, however substantial increases could be achieved if a number of tariff and non-tariff barriers to trade could be improved…. The relatively small scale of local Mexican sheep meat production make imported product highly demanded and has seen consistent Australian lamb and mutton to Mexico. Mexico is also a major consumer of offals.

U.S. Lamb and Variety Meat Exports

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

Metric Tons

Others

EU

Middle East

Caribbean + DR

Canada

Mexico

Source: USDA/FAS

Conclusion:

• Stay engaged.

• Learn from their successes.

• Continue to encourage our American made premium.

• Fight for our own export markets.

“You’ll never beat someone who truly believes in

what they do”

– Darryl MacKinzie, ANZCO Foods