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How the pandemic raised demand for lamb

How the pandemic raised demand for lamb

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Traditional Easter and Passover lamb-centered meals mark peak season for the often overlooked protein. But one year ago, the arrival of the pandemic sent the U.S. lamb industry into a tailspin.

Lockdowns had an immediate, catastrophic effect as holiday dinners suddenly became sad Zoom calls. The initial drop in demand at lamb’s biggest time of year dealt a body blow to the industry. The second largest U.S. lamb processing plant, Mountain States Rosen in Greeley, Colorado, filed for bankruptcy on March 19, 2020.

At the time, the outlook for the rest of the year — when lamb sales rely heavily on restaurants and cruise ships, two sectors that were summarily crushed by COVID-19 — looked equally grim. By April 2020, live lamb prices had dropped by half.

“We lost 50% of our sales overnight,” said Megan Wortman, executive director of the American Lamb Board, an industry lobby. “Approximately 15% of American lamb’s foodservice sales went to travel and leisure. In the first six months, our industry was in absolute panic.”

Producers scrambled to make up the shortfall, helped by a U.S. government purchase-program for food banks. But then something unexpected happened.

Supermarket sales of all kinds of meat began to rise across the country, which was especially the case for lamb. Store sales jumped 28% year-over-year as of last month, according to Nielsen, while beef sales rose 25.6% and pork sales increased 20.5% over the same period.

One year on from the first lockdowns, the pandemic has shown that demand for lamb can be strong, said Benny Cox, senior salesman at Producers Livestock Auction Co. in San Angelo, Texas.

Lamb is traditionally pricier than other proteins, which is one reason pre-pandemic shoppers tended to avoid it.

“We’re still a niche protein when compared to beef, pork or chicken,” said Anders Hemphill, vice president of marketing at Superior Farms based in Sacramento, California.

Typically, he said, “Americans eat 60 pounds of beef, 100 pounds of chicken, 50 pounds of pork — and 1.1 pounds of lamb.”

But that number has been steadily rising in recent years — up from a low of 0.6 pounds per person in 2011, he said.

“The pandemic has caused that number to bump up more,” Hemphill said.

So why the lockdown renaissance? Adventurous millennial eaters and home chefs willing and able to spend more time cooking have fueled a good portion of retail demand, said Cox.

Hemphill cited market surveys that showed lamb was mentioned most often by young adults in the years leading up to the pandemic.

But there’s another factor that’s been boosting lamb’s popularity in recent years — growing demand among first-generation Americans from the Middle East and southern Europe, where lamb is closer to a staple.

“Between 30-50% of the lambs in the U.S. are going to the non-traditional market,” said Reid Redden, director of the Texas A&M AgriLife Research and Extension Center at San Angelo, Texas.

During the pandemic, “ethnic markets really stepped in and took quite a chunk of supply,” said Brad Boner, vice president of the American Sheep Industry Association.

As COVID-19 increased retail sales last summer, Superior Farms invested millions of dollars to get facilities ramped up to meet the retail demand, Hemphill said. One lesson learned from the pandemic, he explained, is that survival is “about being nimble and able to adapt quickly.”

One year after the coronavirus landed on America in earnest, with tight supply and restored demand, sales for Passover and Easter are on solid footing.

“We’re seeing record prices,” said Tyler Cozzens, an agricultural economist at the Livestock Marketing Information Center.

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