SOULEN EARNS $11.53 PREMIUM

Soulen Livestock, Weiser, Idaho, marketed the top lambs in January and earned a total average premium of $11.53 per head.  Fed at Double J, Ault, Colorado, the lambs were 65% Yield grade 2’s and 31% Yield Grade 3’s, which garnered a market grid premium averaging $7.28 a head.  The lambs also qualified for a natural premium averaging $4.25, bringing the total premium to $11.53 per head.  The average lamb marketed through the co-op during January returned a market premium of $3.66 per head and the average pelt brought $5.31.

Marketing Update

Mountain States Lamb Cooperative was able to work through our supply/demand issues in January.  As discussed in last month’s newsletter, supply outweighed demand nationwide during December resulting in a large volume of market ready lambs in January.

The Co-op worked through this situation with the majority of our lambs being marketed on a timely basis. We marketed almost 23,000 lambs during January with an average carcass weight of 77 lbs.  Our yield grades were relatively good with 83% of our lambs grading Y3 or better and we had less Y5’s than a year ago.

Carcass prices did soften in January due to the more aggressive pricing needed to move product and the industry’s excessive supply of market-ready lambs.  The demand from the hotel and restaurant trade still remains soft while the demand from the retailers is generally steady with price sensitivity.
A bright spot is the ongoing growth in our case ready business.

Mountain States Rosen continues to work aggressively to expand its customer base.  We are also working with our current customers to insure we optimize product mix, promote product effectively, and help the retailer minimize their own shrinks.

Checkoff Referendum

The Lamb Checkoff Referendum is underway and ballots must be returned in person or by fax to your local FSA office by the close of business on Friday, February 27.  They can also be mailed to your local FSA office, but they must be postmarked no later than midnight on February 27. Ballots (Form LS-86) can be requested in person, my mail, or fax from the county FSA office or via internet at www.ams.usda.gov/lsmarketingprograms .

Producers and seedstock producers will vote the total number of domestic lambs (defined as “ovines of any age, including ewes and rams”) owned during the period 1/1/08 thru 12/31/08.  Feeders will vote the total number of lambs owned and fed in 2008.  First Handlers will vote the total number of lambs slaughtered during the period.  Mountain States Lamb members producing lambs, feeding lambs, and marketing those lambs through the co-op during 2008 will vote numbers in all three categories.  Our producers qualify as a first handler because they are marketing a carcass to Mountain States Rosen and the first handler fee is deducted on your settlement calculation.
The American Lamb Board reports that their promotion program resulted in roughly 7.6 additional pounds of total lamb consumption per dollar spent on advertising and promotion and $41.59 in additional lamb sales revenue per dollar spent on advertising and promotion.