So, are sheep operators who sell to the usual “pipeline” or sub-wholesale buyers getting a good deal or a bad deal?

      Looking at the Lamb Carcass Yields table the Nov/Dec 2009 sheep! Price Reports, a few important messages jump out at us even before we get to price.

      First, average lamb carcass weights of between 65 and 70 lbs. are right around half of today’s usual on-the-hoof sale-barn lamb weights of 130 to 140 lbs.  Sale barn prices for the period averaged $99.20

      Second, according to the Nov/Dec 2009 (last) issue, lamb carcasses sold for from $243.29 to $253.52 per 100 lbs..

      The U.S. Dept. of Agriculture worked a $31.50 processing fee into that price range.  Subtracting that amount from the higher figure, we get $222.02.  Cut the result in half for the dressing percentage ($111.01), add a modest pelt value (say, $6) and we see the wholesale value of our lamb is $1.17/lb.

      This means about 15% of the value of that lamb went into refrigeration, hauling costs and sales commissions.  In other words, for labor measured in man-minutes and comparatively easier effort—but a giant investment in equipment and red tape—these good folks got about a sixth what you got as you toiled in the cold at lambing time, hurt your back trimming hooves or shearing, plus castrated, docked, fed, wormed, vaccinated and handled manure for months on end.

      To be fair, I must say we haven’t paid $31.50 for lamb processing since the 1980s.  So the wholesale value of that carcass was likely even less—I’m guessing something like 10 bucks less.

      What a deal!  Let’s see, here’s 10 for me (grower) and 1 for you (packer), and my work’s done when I swing that gate shut!  You still have to get the consumer to buy it before it spoils on you!