Sheep sector faces turbulent times

On the face of it, Canadian sheep producers appear to have a lot going for them. Only about 20 percent of the lamb meat demand is being filled domestically and wool is increasingly seen as an environmentally sustainable option for fabrics and clothing.

But the failure of North American Lamb Company and its attempts to build a vertically integrated meat processing system plus the inability of the country’s largest marketer, the Canadian Co-operative Wool Growers (CCWG), to produce a financial report at its last annual general meeting show issues within the sector.

Erin Morgan, Ontario Sheep Farmers executive director, lamented the fact CCWG didn’t hold a virtual AGM at its October meeting in Carleton Place, Ont.

“I know there are a number of producers across Canada that were interested in attending that meeting and learning about the Wool Growers and what they were up to,” she said.

“From all accounts, it sounds like they didn’t share their financials and I haven’t seen their financials yet so I can’t comment on what’s happening at the Wool Growers.”

There have been rumblings on the wool side in the sector regarding the situation and possible internal conflicts.

Morgan Moore, CCWG interim general manager, did not return a request for comment.

But Ontario Sheep Farmers is bullish on the industry because of its potential.

“There is lots of opportunity in the sheep industry,” said Morgan, whose organization is the largest provincial producer group in the country.

Canada imports a lot of lamb to serve a large market in the greater Toronto area, and most Ontario producers also sell into that market.

While on paper the potential for the industry seems clear, in reality, there is plenty of nuance, including the ability for Australian and New Zealand producers to ship year-round into the Canadian market, while domestically, that’s primarily in the spring.