Tag Archives: lamb

On July 25, 2019, U.S. Secretary of Agriculture Sonny Perdue announced details of additional actions the U.S. Department of Agriculture would take to support American agricultural producers while continued efforts on free, fair and reciprocal trade deals take place. As part of those actions, USDA’s Agricultural Marketing Service announced up to $17 million of food purchases in American lamb under the authority of Section 5 of the Commodity Credit Corporation Charter Act for distribution to various food nutrition assistance programs.

 

A pre-solicitation notice issued Feb. 18 announced a near-term opportunity for a solicitation of lamb products to be procured as to include, but not limited to, lamb shanks. A delivery period is suggested as May through September.

 

Solicitations will be issued soon and will be available electronically through the Web-Based Supply Chain Management system. Public WBSCM information is available without an account on the WBSCM Public Procurement Page. All future information regarding this acquisition, including solicitation amendments and award notices, will be published through WBSCM, and on the Agricultural Marketing Service’s website at www.ams.usda.gov/selling-food. Interested parties shall be responsible for ensuring that they have the most up-to-date information about this acquisition. The contract type is anticipated to be firm-fixed price. Deliveries are expected to be to various locations in the United States on an FOB destination basis.

 

Pursuant to Agricultural Acquisition Regulation 470.103(b), commodities and the products of agricultural commodities acquired under this contract must be a product of the United States, and shall be considered to be such a product if it is grown, processed and otherwise prepared for sale or distribution exclusively in the United States. Packaging and container components under this acquisition will be the only portion subject to the World Trade Organization Government Procurement Agreement and Free Trade Agreements, as addressed by FAR clause 52.225-5.

 

To be eligible to submit offers, potential contractors must meet the AMS vendor qualification requirements. The AMS point of contact for new vendors may be reached via email at NewVendor@usda.gov. Details of these requirements are available online at: https://www.ams.usda.gov/selling-food/becoming-approved.

 

Source: USDA/AMS

 

The Livestock Marketing Information Center released Analysis and Comments on the American sheep flock this week and said two “unusual developments could factor into the lamb market calculus during the next 12 to 24 months.”

 

“First, the growth rate of American lamb and mutton imports might moderate significantly as the Australian flock has downsized due to drought, and China imports more-and-more of all animal-based proteins driven by the African Swine Fever epidemic inducing reductions in their pork production,” read the report. “However, in the near-term, the China story has a new dimension of uncertainty with the Novel coronavirus epicenter in Wuhan, China. Second, 2020 brings on line both opportunities and potential disruptions to the sector – the opening of a modern, federally inspected lamb packing plant in Colorado (Colorado Lamb Processors near the town of Brush). That state-of-the-art plant is scheduled to begin harvesting animals late in the first quarter of the year, or early in the second.”

 

“In the face of the developments listed above, for the next two years, annual changes in the supply of American lambs are expected to be rather modest. Importantly, the two unusual developments described above, provide uncertainty regarding how much U.S. prices increase and how volatile markets are.”

 

However, the report concludes with some promising news.

 

“Overall, for the first three quarters of 2020, look for lamb prices (slaughter and feeder) to be at or above 2019. For slaughter lambs, the largest percentage year-over-year gain is expected to be in the first quarter. The second quarter might bring the biggest gain from 2019 for feeder lambs. Note that the first quarter of 2019 had very low slaughter lamb prices compared to the balance of that year. Even though lamb supplies should remain tight during the fourth quarter, the LMIC price forecast incorporates some pressure from competing meats, especially huge pork supplies. Still, lamb prices that quarter might be very close to 2019.”