Overview

Black sheep: Sheep farmers will struggle from low demand for lamb and wool products

IBISWorld’s industry research report on Sheep Farming contains five-year forecasts and data analysis that can help you identify and mitigate risks in potential new markets. Position yourself as an expert with internal stakeholders by using our comprehensive industry research to inform your reports, proposals and presentations. Our business information will save you money by helping you make better decisions, faster.

REPORT SNAPSHOT

Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Revenue
$971m
Annual Growth
12-17
-0.9%
Annual Growth
17-22
Profit
Employment
97,066
Business
95,556

Industry Threats & Opportunities

  • Domestic wool production has declined as textile producers increasingly chose synthetic fibers over wool
  • Unlike other livestock sectors, sheep farms have hardly streamlined their growing operations
  • Wool production will likely decline as synthetic fibers compete with wool in the textile industry
  • Industry Analysis & Industry Trends

    The Sheep Farming industry has been in decline for the past decade, as per capita consumption of lamb and mutton has steadily shrunk. . In addition to mild demand for industry meat products, domestic wool production has declined in the past five years as textile producers increasingly chose synthetic fibers over wool. As a result, industry revenue is anticipated to decrease over the five years to 2016. Over the next five years, sheep farmers are anticipated to continue struggling from low demand for lamb, mutton and wool products.


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    Industry Report - Industry Analysis Chapter

    The Sheep Farming industry has been shrinking since 1940, when US sheep and lamb numbered about 56.0 million. Flock sizes and farm numbers are declining due to low domestic demand for lamb and mutton, while competition from other fibers limits revenue from wool production. As demand for industry products has decreased, domestic production has steadily declined. From 2012 to 2013, the US sheep and lamb inventory decreased 1.0%; in 2017, the inventory is anticipated to decline another 2.0%, to total 5.2 million head. Similarly, shorn wool production decreased 1.0% in 2014, while the price of shorn wool fell 6.0%, to an average price of $1.45 per pound. Over the five years to 2017, domestic production of wool, which accounts for about 10.0% o

    Additional Insights for the Sheep Farming Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Sheep Farming Industry are

  • Proximity to key markets
  • Tailoring goods and services to market conditions
  • Production of premium goods and services
  • IBISWorld analysts also discuss how external factors such as Demand from meat, beef and poultry processing and Price of red meat in the Sheep Farming industry impact industry performance..

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    Industry Products

    What is the Sheep Farming Industry?

    Sheep farmers primarily raise or fatten sheep and lambs for their wool, meat, milk or sale to other farmers. Meat derived from these animals is separated into two categories: lamb and mutton. Lamb is used to define meat from sheep less than one year old, while mutton refers to meat from sheep more than one year old.

    Industry Products
    Breeding ewes
    Market lambs and sheep
    Replacement lambs
    Breeding rams
    Industry Activities
    Sheep farming (e.g. for meat, milk and wool production or herd replacements)
    Lamb feedlots (except stockyards for transportation)

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Demand from meat, beef and poultry processing
  • Price of red meat
  • Average annual precipitation
  • Threat of disease in livestock
  • Price of feed

  • Current Performance
  • Downstream demand
  • Industry structure
  • International trade
  • Chart: Revenue Growth

  • Industry Outlook
  • Downstream demand
  • Trade
  • Profitability and the Farm Bill
  • Table: Sheep Farming Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Sheep Farming Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Sheep Farming
  • Meat, Beef & Poultry Processing
  • Textile Mills
  • Cattle & Hog Wholesaling

  • Key Selling Industries
  • Farm Supplies Wholesaling
  • Farm, Lawn & Garden Equipment Wholesaling
  • Livestock Production Support Services
  • Sheep Farming
  • Tractors & Agricultural Machinery Manufacturing
  • Veterinary Services

  • Products & Services
  • Breeding ewes
  • Market lambs and sheep
  • Replacement lambs
  • Breeding rams
  • Chart: Sheep Farming Industry Products and Services Segmentation

  • Demand Determinants
  • Downstream meat consumption
  • Wool demand
  • Herd sizes
  • Export demand
  • Seasonality

  • Major Markets
  • Ewes for other sheep farmers and breeders
  • Slaughterhouses and meat processors
  • Textile markets
  • Lambs for other sheep farmers and breeders
  • Rams for other sheep farmers and breeders
  • Export markets
  • Chart: Major Market Segmentation for the Sheep Farming Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciationRent and utilities
  • Chart: Cost Structure Benchmarking – Sector vs Sheep Farming

  • Basis of Competition
    Lamb and mutton producersWool producersExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Sheep Farming Industry

  • Industry Globalization
    Major Companies
    There are no major players in this industry
    Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Sheep Farming Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Sheep Farming Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Price of Feed (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    Forage
  • Food consisting of plant material (mainly plant leaves and stems), used to feed grazing livestock.
  • Greasy Wool
  • Raw wool that has not been processed (i.e. cleaned and scoured).
  • White Tablecloth Restaurant
  • An upscale restaurant that generally serves high-end food
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Sheep Farming:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Sheep Farming market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Sheep Farming, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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