FY 2004 Sheep & Goat Industry Grant Initiative (SGIGI)
Grant Awardees

Website: http://www.abga.org/

Objective: This grant will fund a proposal to: 1) develop a national genetic evaluation program for meat goats, 2) estimate genetic parameters needed for the genetic evaluation program, 3) produce printed educational materials to inform goat breeders and commercial goat producers about the use of information from a genetic evaluation program to improve their flock.

Other breed improvement program procedures may be adapted to analyze goat records. Software will be written to efficiently combine data from participating breeders and the breed association's pedigree records. This software will also perform data checking/editing tasks to help insure validity of records. Records will be processed to calculate EPDs at Virginia Tech University. After genetic evaluations are produced, the results will be quickly disseminated to purebred breeders and commercial producers via printed material and made available on the internet.

Complete performance records from a research herd of goats at Texas A&M University's San Angelo Agricultural Research and Extension Center will be used to estimate genetic and phenotypic parameters needed for the genetic evaluation.

It is the overall goal of this program to benefit commercial goat producers across the US, who will have better information with which to select breeding stock that will improve their production. There will be information available to compare the genetic merits of goats in different herds and in different regions of the US. This will allow for increased efficiency of meat goat producers through the use of genetically superior breeding stock.

Update: The National goat evaluation has developed interest and awareness for the need of producer genetic improvement tools. The National goat evaluation program was named Boer Goat Improvement Network (BGIN - pronounce begin) to give the program a name and more important an identity.  With the effort in 2004, we have addressed many of the issues that face an EPD program. The educational curve is large with a program of this nature and the hours of education will continue for ABGA and Extension educators, as producers will have many questions about the program. However, this effort will aid goat producers in genetic improvement for years to come. They anticipate the completion of all activities of the grant by August of 2005.

On a side note, the Kilo association is working with Virginia Tech to develop EPDs for the Kilo meat goat breed. They are using some of the same materials and methods developed by the BGIN program. 

NSIIC GRANT
National Goat Evaluation Program 2004 Outline of Program
Grant Participants Members
American Boer Goat Association
Texas A&M Research Center - San Angelo
Virginia Tech University

January 2004

ABGA and TAEX at San Angelo begin working with goat producers interested in collected performance data. ABGA and TAEX at San Angelo established a set of pilot herds to define, construct and implement a data collection process. The working group established a set of performance collection standards. These standards utilized the efforts of NSIIP and other performance based standards within production agriculture. Educational and information materials were developed and released to the industry via the ABGA magazine and the ABGA web site. Development of a logo for the program was implemented. A news release of the program and grant was also developed. 

February - May 2004

The working group named the program Boer Goat Improvement Network (BGIN). Data was submitted by five original herds and was expanded to six in February of 2004. Data was submitted via the NSIIP spreadsheet. The NSIIP spreadsheet utilized in the sheep industry was revised to meet the goat industry standards of naming and performance standards. 

May-June 2004

In May and June Virginia Tech established the systems and requirements needed to process the performance data for an evaluation. Adjustments factors, age of dam, litter size and heritability factors were developed for the pilot evaluation. Genetic parameters will be finalized in the second evaluation scheduled for spring  2005. Educational and information materials were released to the industry via the ABGA magazine and the ABGA web site. 

July - September 2004

ABGA and TAEX at San Angelo reviewed the submitted data collected by Boer goat producers. The data was compared with pedigree data from ABGA registry. The data was incomplete in many cases and required additional input from submitting herds to correct missing or incomplete data. Each pilot herd was provided with a data report listing data edits or problems within the data submitted by the herd. 

October 2004

The data was submitted to Virginia Tech in July and after corrections by pilot herds. The evaluation was completed in late October. EPDs were calculated for a total of 1,780 animals, including 715 breeding does and 209 billies. The target time for processing performance records is 30 days, a goal we anticipate meeting in future analyses. Along with EPD data, Virginia Tech submitted a detail report of the evaluation.  

November 2004

ABGA staff developed a set of reports for each pilot herd with their animals and corresponding EPDs. The reports were reviewed and explained during a workshop for the pilot herds. During the workshop, the group discussed methods to improve the spreadsheet, data collection and the accuracy the data submitted. 

December 2004

The data collection spreadsheet was revised to remove issues and double reporting of information. A paper based reporting form was developed to aid producers in submitting data. By adding a paper based method of reporting we believe that more producers will participate in the BGIN program. A BGIN newsletter was mailed to 5,625 ABGA members to provide additional information on the program and methods in which producers can submit data. We have received a great deal of interest in the program from the newsletter. 

January - August 2005

ABGA has requested the second round of data from producers. The data was to be submitting by January 20, 2005. ABGA staff will review data and report problems back to the producer prior to submitting data to Virginia Tech for calculation. Development of final genetic parameters will be concluded in spring of 2005. Producer based EPDs from the evaluation will be published in May-June of 2005 for the goat industry.

Website: http://www.sheepusa.org

Title: Proposal for the Research and Development of a National Program for Sheep Price Risk Management

Scope: National Market Stability

Objective: The goal of the proposal is a research partnership to develop a viable price risk management program for sheep producers.  

Producers, producer groups as well as processors have shown a significant interest in the development of a viable price risk management program. A new class of livestock price risk management tools have been developed for swine, feeder cattle, and fed cattle. These products, called the Livestock Risk Protection (LRP) program were developed by Applied Analytics Group, Inc. (AAG) and are offered by the Risk Management Agency (RMA) of the USDA. These products are price insurance products based heavily on futures and options markets. One of the main benefits of these products is the use of regional cash prices to determine payments to producers, thereby eliminating some of the basis risks.

The research partnership is between the American Sheep Industry Association (ASI) which is a trade group actively involved in many marketing and policy issues for the U.S. sheep and goat industries and Applied Analytics Group, Inc. (AAG).  AAG specializes in the application of new and innovative research and the development of risk management tools for agricultural producers.  AAG does this by facilitating meaningful dialog between producers, producer groups, agribusinesses, the insurance industry, academia, financial markets, USDA and other Federal and State government organizations. AAG developed the cutting edge Livestock Risk Protection (LRP) price insurance products launched by USDA-RMA in 2002 and 2003 for swine, feeder cattle, and fed cattle producers.

One of the best measures of stability in an industry is the ability to maintain and strengthen the owners equity.  It is therefore the goal of this program to introduce a price stabilization program that can help preserve the owners equity in their operation.  The amount of equity that dissipates when prices drop can translate into financial stress for producers, who may have difficulty meeting loan payments based on the value of their livestock.  The most recent year with a very significant decline in lamb prices was 2001. Compared to the initial prices of the year, the drop in equity in 2001 was nearly 20% of the total value of the lamb crop (about $60,000,000 nationally). 1998 was also a time period where prices dropped significantly, notably at the end of the year as the entire livestock industry was hit by lower than expected meat demand overseas. Obtaining operating loans as well as financing for investment in sheep operations ought to be enhanced for producers with the availability of a risk management program. As stated, essentially no risk management options are available today, which is a barrier to budgeting and borrowing.  A valuable risk management program would help producers manage price risks and protect against significant revenue shortfall caused by weather variability, worldwide financial market volatility, increased import competition, narrow profit margins, and the increased price risks in related industries. The sheep and lamb markets are subject to tremendous price vulnerability, and producers are subject to severe swings in revenue as a result. Producers would obviously benefit from the ability to mitigate downswings in product prices while protecting the upside potential of their marketing.

 The previously developed Livestock Risk Protection (LRP) program offers producers a user-friendly price risk management tool that protects producers against downswings in price movement while maintaining their full upside potential in price.  The program that is developed could utilize cash prices for determining payments to producers, and has flexible time lengths—so they match the production periods of producers and give producers more of the protection they need. Such a program would bring about stability to the production of sheep and lamb products, and help producers ensure the survival of their operations.

 Preliminary analysis indicates a seasonal trend in lamb prices. This research also suggests that there is a relationship between lamb prices and other livestock prices, as well as feed costs and feed availability. One of the main objectives of the proposed project is to develop a method for forecasting lamb prices several months in advance based on a combination of current lamb cash prices, futures markets for other livestock and feed prices.  The USDA-RMA has shown a deep commitment to the risk management needs of livestock producers, particularly those that are defined as under-served states and under-served commodities.  Confidence of producers, lamb feeders and processors certainly could be increased with protection against dramatic changes in these factors.

Update: The American Sheep Industry Association (ASI) , National Lamb Feeders Association (NFLA), American Lamb Board (ALB) and the National Sheep Industry Improvement Center (NSIIC) held their annual meetings during the same week during January, 2004 in Sacramento, California.  The ASI contract cooperator, The American Feed Industry Association and Applied Analytics Group, used this opportunity to introduce the risk management concept during a joint Board meeting of the ASI and NLFA.  From the overall presentation attendees were invited to participate in a focus group to further identify the unique challenges to the American lamb industry that needed to be addressed in developing a pricing model.  The group was comprised of producers, feeders and processors from all segments and regions of the country.

Margaret Soulen-Hinson of Idaho was chosen to lead an industry group in the development of a future pricing model.  A future pricing model is a fundamental element of the project.  Wayne Purcell of Virginia Tech was contracted as a technical advisor to assist in the pricing and product development.

The pricing model was completed and presented to various industry groups in January 2005.  With that input complete the LAMB LRP product was presented to the USDA - Federal Crop Insurance Commission (FCIC)in late April.  The initial reception of the LAMB LRP product was not as favorable as expected.  ASI and the taskforce will now begin the process of working with FCIC through a process of formally correspondance to address the FCIC’s concerns.

Title: Safety and Quality Assurance for Sheep Producers in the Northeast

Scope: Regional Education

Objective: The project is a joint effort between the Connecticut Sheep Breeders Association Blue Ribbon Sheep Forum Committee, University of Connecticut College of Agriculture, Departments of Animal Science and University Extension.  It is their belief that today’s sheep producers need to understand the five steps necessary for participation in the Sheep Safety and Quality Assurance Program(SSQA).  This will make it possible for them to implement the proper criteria with their flocks on their farms Their goal is to have SSQA Level 1 Training available in the New England region so that the area sheep producers have an opportunity to learn the industry standards for:

•    Use of Feed Additives and Animal Health Products

•    Animal Health and Maintenance

•    Harvested Feeds, Contaminants, and Sanitation

•    Feed Storage and Monitoring

•    Nutritional and Heath Management and Husbandry

The SSQA program has not previously been available in the Northeast partially because there is no one in the region with the proper teaching qualifications. The grant will provide an opportunity to secure the services of a qualified trainer and help get the word to producers in the area through a variety of media that the program is available.  The training will be provided to an estimated 90 producers from Vermont, Maine, New Hampshire, New York, Massachusetts, Rhode Island, and Connecticut who will attend the Blue Ribbon Forum at the University of Connecticut in Storrs, Connecticut in February 2005.

Update: The grantee originally had planned to hold the Sheep Safety Quality Assurance (SSQA) Level 1 training during their annual event in 2005.  However, with the grant monies available earlier than they had expected and their ability to make it one of the centerpieces of their program, they chose to hold the session in February 2004. The date chosen for the Blue Ribbon Forum of the Connecticut Sheep Breeders’ Association was February 28, 2004.   Potential participants were contacted by using their newsletter, The Connecticut Sheep Breeders’ Association Newsletter, The New England Shepherd and Country Folks that has a distribution throughout New England and New York. 

Dr. Deborah Roeber is a qualified SSQA trainer and she agreed to conduct the training.  40 Adult participants attended the morning session where each was provided with a copy of the “Manual of the SSQA program” which was used as the course textbook .  The manuals were kept by the participants at no cost to them. 

During the afternoon Dr. Roeber provided 4-H members with a SSQA program that was tailored for them.

At the conclusion of the session the adults were provide with an evaluation form which were still being reviewed when the grant was completed with the Sheep Center.  The grantees also planed to conduct a follow up with the participants that were involved with the formal presentation to get feedback about how much, if any the seminar topics were being incorporated into their individual flock management programs.

Website: http://www.lsu.edu/index2.html

Title: Integrated approach for controlling nematode parasites in small ruminants

Scope: Production Research

Objective: Rural economics depend heavily on the economic viability of the family farm and most are involved in beef and forage production. Small ruminants provide a viable alternative animal enterprise. Development of such enterprises in the Southeast, where a majority of US forage is grown, is hampered by a serious gastrointestinal nematode (worm) parasite constraint,  specifically (Haemonchus contortus, or the barberpole worm). Recent USDA-APHIS-VS sheep producer surveys revealed that a vast majority identified stomach/intestinal nematodes as a major concern. These losses were compounded in the southeastern region because climatic conditions are generally more conducive to the growth and establishment of large worm populations. Control traditionally relies on anthelmintic treatments and worms have readily developed resistance to most anthelmintics available in the US due to overuse. Due to high discovery and development costs and a limited market for these drugs with small ruminants, it is unlikely that new classes of anthelmintics will be developed for small ruminants alone. In addition, increasing public demand for chemical residue-free commodities and concerns over environmental impact of excreted anthelmintics has increased pressure to find alternatives to anthelmintic control of worms in livestock. If alternative, sustainable methods of worm control are not developed, small ruminant production will become a non-viable enterprise in the southeastern US. A number of alternate strategies are currently being evaluated, three of which are smart drenching, copper-oxide wire particles and FAMACHA^{© 1}.  There is a growing data base on the effectiveness of these novel technologies which could constitute major components in a sustainable worm control program.

The objective of the proposed project is to evaluate the field application of 3 scenarios using an integrated approach including smart drenching, restricted use of moxidectin, copper-oxide wire particles and FAMACHA^© to control worm infection in mature ewes and weaned goat kids and lambs. This work is expected to have an immediate impact on productivity and profitability of small ruminant production systems in the southeastern US and other regions where Haemonchus contortus can be a problem. They believe producers will be able to reduce overall anthelmintic usage by integrating an alternative compound (copper-oxide wire particles) with identification of animals in need of treatment (FAMACHA^©) and adopting smart drenching procedures, thereby reducing cost of production while improving animal health and productivity. Lower frequency of deworming will also reduce potential environmental impact of excreted anthelmintics and will decrease the development of resistance, thereby prolonging the usefulness of available anthelmintics. This integrated approach will provide a cornerstone for inclusion of future environmentally sound parasite prevention and control technologies to secure a sustainable, growing small ruminant industry. The project will particularly impact limited-resource producers and will increase stability of farming communities in those areas.

The organizations involved in the project are Louisiana State University, Baton Rouge, LA and USDA-ARS, Booneville, AR.

¹ FAMACHA^© is a novel idea for the treatment and control of  Barberpole worm in goats and sheep which measures levels of anemia or blood loss as apposed to fecal egg counts and treatment decisions are based on these levels.

Update: No results are available at this time.

Website: www.nuggetinternational.com/southern/index.htm

Title: Lazy M Lambskins & Saddle Shearling Branding of Domestic Sheepskins

Scope: National Marketing

Objective: Southern Wool & Skin is a division of The Melton Provision Company and was originally formed to make use of the skins generated by their packing operation.  They are committed to the long-term viability of domestic sheepskins through expansion of their current market segments.  They have an extensive product line but for the purposes of this grant are focusing on marketing two products; their vegetable tanned sheepskins (Lazy M ™ Saddle Shearling) and their rugs (Lazy M™ Lambskins).  They are focusing on these items because they fit a narrow niche and therefore don’t require expensive advertising campaigns. The overall objective of this grant is to stabilize or increase pelt credits to lamb producers and feeders by establishing a brand name for rugs and saddle shearlings made from American sheepskins.

The Lazy M™ Lambskins & Saddle Shearling marketing programs are designed to enhance the value of domestic pelts by competing in market segments that are less price competitive and more driven by the quality and other attributes of domestic sheepskins.  In the world of global competition there are many sources for comparable material at lower prices.  Rather than compete at that level and risk extinction, Southern Wool has chosen to compete on the high quality of U.S. skins and customer service.  In order to increase the awareness of potential customers to these products they need to expand their presence in the market through promotional material, direct marketing and participation in trade shows. They have developed sales materials, a website, and identified five trade shows which would provide the best exposure to their targeted buyers.

 Lazy M™ Lambskins are made from purely domestic pelts and have several distinct qualities that are desirable to home furnishing stores, interior designers and upscale home accessories outlets.  Domestic skins are greater in size than foreign products and Southern Wool and Skin produce a number of natural rugs which are unique and unavailable from their largest competitors; Australia and New Zealand.

 Lazy M™ Saddle Shearling is a high quality domestic product which is used by custom saddle makers as a lining for the underside of a Western saddle. For this product the pelts are selected and graded and only the top quality' vegetable tanned pelts will meet this segment's needs.  When a custom saddle maker contracts to build a saddle for $3,000 to $10,000 dollars and the competitors for the saddle shearling can only offer a $20 discount for a cheaper shearling, that is of notably lower quality, it is not worth it to the saddle maker to use a cheaper sheepskin that will detract from the quality of the entire saddle.

Southern Wool & Skin is at the point in its existence where they believe they must market more aggressively in product lines where they can compete on quality and service. Due to the expensive nature of operating a tannery in the US it is not possible, in many cases, to compete solely on price.  They have access to US lambskins from a variety of domestic packing houses. Through the  Lazy M™ brand of saddle shearling and rugs they are attempting to differentiate themselves based on the attributes of American skins and their ability to service the customer, not on cheaper pricing.  It is their intention to try this approach with other product lines that have clearly defined markets.  The goal is to penetrate niches, one by one, in order to have a stabilizing effect on the pelt credits given to lamb suppliers.

Update: The sales activities and advertising are on schedule.  There has been only minor modifications in the sales material and marketing approach which is a result of the feedback they have received.

Their advertising includes direct mailings, print ads and they have an advertisement that will debut in the June 2004 "New Big Book" trade directory The New Big Book have further shown an interest in a press release and photos for an upcoming issue of their monthly magazine. This free press was an unanticipated benefit and an indication of the increased market presence.

As the organization has expanded their marketing they have learned about how the major home accessories trade shows operate and which ones are critical to participate in.

There have been a number of other unforeseen opportunities as a result of Southern’s heightened presence in the market, such as  contacts with manufactures of lamp shades for  Tommy Hilfiger and Ralph Lauren and a dialogue with several hunting lodges that are interested in custom tanned game hides. These are both markets that they feel they can enter with no retooling and minimal capital expenditures.

Beyond the goal to attract new buyers, Southern’s goal is to compete on service and quality of product.  As proof that this goal is being reached they have not only attracted new customers but are also starting to see repeat business and contracts.  They have not only been able to work with small buyers but have also had a chance to bid on business with several volume buyers.  Saddle makers are starting to recognize the Lazy M brand and the trade shows are a chance to show them the quality of the domestic products.

The marketing is netting the business new customers for all of their products and as of the end of March 2004, Southern Wool & Skin is close to selling as many Saddle Shearlings as they sold all of 2003 for the Lazy M selection.

One of the concerns that Lazy M™ management had when they made the decision to take on new customers was that by making direct sales they may impact the sales of their wholesale distributors.  However, they have found this fear to be unfounded and have in most cases attracted new customers from their competitors, who operate in Mexico.

Title: Investigation and Development of Convenience Food Products Made From Lamb

Scope: National Product Development

Objective: The goal of this grant is to fund the research and development of convenience food products made with lamb. The objective of the project is to investigate product manufacturing capabilities and formulations, develop and test prototype products and determine preliminary sales potential. Included in this will be the exploration of new technologies, formulations and methods to improve the eating quality as well as extend the shelf life of the products. Convenience food products that will be a part of the project include pre-seasoned items for the fresh meat case, prepared ready-to-eat dishes in the frozen food case, items for the deli case, and food court items.

Mountain States Lamb Cooperative (MSLC) has sheep producer and feeder members from  Wyoming, Montana, Colorado, California, Oregon, Utah, Idaho, Arizona, Nevada and South Dakota, with a significant capacity to market lambs through MSLC.  The main intent is to create new opportunities for members of Mountain States Lamb Cooperative (MSLC) to add value to the production of lamb products and provide continued sustainability for their operations, which will have an impact on the entire lamb industry. At the present time, MSLC is the only totally producer owned, vertically integrated lamb cooperative that is marketing and distributing lamb on a national basis. MSLC members has ownership in the processing company, Mountain States/Rosen, which is the second largest lamb processing and marketing company in the U.S. and is well established in a variety of retail stores and food service establishments across the country. Expansion of their products to include entry into the convenience food arena is a logical next step in the growth of this company.

This new company has taken an aggressive and creative approach to lamb marketing that utilizes cutting edge technology from production and management on the farm and ranch, to innovative processing, packaging and product variety. The cornerstone of the marketing effort is being placed on value added products, with emphasis on consumer friendly items, including convenience foods. Development of convenience food products for lamb not only creates a way to utilize parts of the carcass that aren't as desirable in the fresh meat case, such as the breast and chuck, but they also provide a method to level out sales and stabilize marketing efforts, which helps the entire lamb industry. In this project, MSLC will be working with several food manufacturing companies, both on a large and small scale in a combined effort. The companies offer different types of products and processing methods, all of which can utilize lamb.

In 2001, a number of projects were funded under the 201 Lamb Assistance Program to look at product development. These included a lamb shoulder and gravy product with lean yield, optimum time-temperature cooking relationship and flavor profiles; development of a lamb shank osso buco, lamb ribs called coyote wings, and a shoulder product called lamb barbacoa; and development of heat and serve home meal replacement for lamb. That is the extent of any new product development that has been done for lamb in recent years.

The last extensive survey done for the lamb industry in 1998 indicated that prepared foods are the third largest fresh food category, with 42% of shopping households purchasing prepared foods, buying at least one every three weeks. Home meal replacements, (meals prepared away from home for immediate consumption at home) are increasing. The market is growing at 12-13% and by 2005, this is estimated to reach $150-170 billion and will involve 20% of the restaurant business, and 7.5% of supermarket sales.

The study concluded that in order to reach a broader base of consumers the industry must find ways to make lamb more available through a wider selection of lamb products in a broader selection of stores and restaurants. The leadership of MSLC along with the marketing partner, Mountain States/Rosen, agrees with this conclusion and is anxious to explore new products and subsequent markets on a broad scale. Funding of this project will jumpstart their efforts in this venture and lead the way for the lamb industry.

Update: Investigation and Development of Convenience Food Products Made from Lamb

Mountain States Lamb Cooperative

With Phases 1 and 2 complete, the Investigation and Development of Convenience Food Products Made from Lamb project is focusing on the third and final phase. Mountain States Lamb Cooperative (MSLC) is investigating the preliminary sales potential of the prototype products that have been developed.

Two of the five products developed in Phase 1 and 2, the fajita meat and the shredded Mexican-style meat, were presented to two leading distributers in the lamb distribution industry.  The meat received favorable reviews from corporate sales and marketing personnel. They were enthusiastic about the taste, texture, and convenience of the product. That company's personnel reviewed the product labeling, and discussed manufacturers of an existing meat process with MSLC representatives. Mountain States continues to pursue market opportunities for the product with a regional gourmet food distributor.

A presentation was also made to the Mountain States Rosen LLC. (MSR) sales team in New York. Together, they and MSLC, are rolling out other lamb and veal convenience products developed with an east coast marketing firm, Product Solutions Group. MSR exhibited an interest in the products developed using an existing manufacturers process, but chose to remain focused on the products that are currently being introduced in the marketplace.

A third option for being investigated is to market the product using a direct sales website that is being created. The Co-op believes the convenience and quality of the fajita and Mexican-style shredded lamb will appeal to internet shoppers.

Mountain States Lamb Cooperative is currently working with the existing manufacturer of specialty meats to gain USDA approval on the product labeling.  However a business restructuring that involved the acquisition of the existing company, product development and USDA approval have slowed.  This change in ownership has created some difficulties and if MSLC finds that they can not move this project forward using this company, other options will be evaluated, including trying to utilize a similar process with another company.

Website: http://www.nlfa-sheep.org/

Title: 2004 Tri-Lamb Summit

Scope: International lamb issues coordination.

Objective: The National Lamb Feeders Association (NLFA) has received this grant to help offset expenses associated with US representatives participation in the 2004 Tri-Lamb Summit with representatives from the lamb industries of Australia and New Zealand to be held in Australia.  In addition to this grant the NLFA and American Sheep Industry Association (ASI) will both make considerable contributions to finalize the total expenses associated with the American participation.  The U.S. attendees are industry leaders and volunteers who will donate two weeks of their time to participate in the summit.

The first Tri-Lamb Summit was held in September 2003 in the United States.  The result of this summit was an agreement between lamb producers from Australia, New Zealand and the U.S. The agreement was formalized in a Memorandum of Understanding (MOU) and the goals are:

•  Improve demand for lamb in the U.S. and halt decline in per capita consumption without reducing current farm-gate prices.

• Coordinate activities to maintain the high value of lamb in the U.S.

• Develop benchmarks to measure the effectiveness of the tri-lamb group in terms of cut prices, supplies/volume and promotion activities.

• Strengthen the sheep industries in all three countries by taking whatever actions necessary to ensure that markets in each country are at a level that will be profitable for each segment of the industry, especially the producer (farmer) and feeder.

• Monitor seasonal supplies and evaluate appropriate responses to market fluctuations

• Enhance export market opportunities for lamb and lamb products.

To meet those goals, representatives from Australia, New Zealand and the U.S. agreed to hold annual summits that would resolve lamb marketing issues between the three countries.  Participation in this summit is important for the U.S. lamb industry to meet the goals of the agreement and improve communications of U.S. lamb suppliers. In past years, these communications were minimal. The U.S. has one of the highest valued lamb markets in the world. The goal of the U.S. lamb industry is to build stability in the U.S. market and maintain this high value. Although value is high, U.S. consumption is declining. This project is designed to assist the U.S. industry in working cooperatively to increase U.S. demand and therefore value, for lamb in the U.S.

The NLFA supports increasing demand for lamb in the U.S. market but that demand must be based on both value and volume. As an organization, the NLFA believes that selling more lamb at a cheaper price does not benefit the U.S. lamb industry as a whole. Therefore, creating value for lamb and selling it at a higher price (thus higher value), is a win-win situation for all lamb producing countries.

Currently, lamb prices in the U.S., Australia and New Zealand are stronger than they have been in many years. Producers are in a good position to capitalize on this price positioning and begin working cooperatively to increase sales and consumption of lamb in the U.S. The U.S. market holds a huge potential for all three countries. Americans consume 220 Ibs. of meat per person. Only one of those consumed pounds is lamb. If the world lamb industry can work as a whole to increase that consumption level by even a half pound, while maintaining profitable price levels, everyone would win.

This type of cooperation provides a unique opportunity for competing nations to enhance the profitability and the sustainability of the U.S. lamb market for the three supplying countries. The MOU demonstrates that all three major lamb production nations have a common interest and willingness to address issues for the good of all three industries.

Update: In 2003 Sheep industry representatives from The United States, Australia and New Zealand began an initiative focused on mutual cooperation.  During 2003, two meetings were held which included sheep industry representatives, as well as members of the U.S. Congress and official diplomats from Australia and New Zealand.  With the recognition that the United States has one of the highest-value markets for sheep products in the world and is one of the least restricted in terms of international trade, it was the joint desire of the representatives to the formative meetings that we find areas of cooperation and perhaps collaboration. 

Even though the primary focus of the Tri-Lamb group was on the lamb sector of sheep production, sheep producers in all three countries rely heavily on wool income and are very interested in optimizing wool production and marketing.  The Tri-Lamb trip including the tours and educational events were heavily weighted with wool and wool science and technology.  The Australian sheep industry and its producer segment is keenly aware of the balance between meat and wool production and this balance was the focus of most of the trip and events, as well as the relevance of this balance to the three countries’ marketing concerns.

The delegates included representatives of American Sheep Industry Association, the National Lamb Feeders Association, U.S.D.A. and other producer leaders who sit on boards and committees of state and national U.S. sheep organizations.  One of the main goals was to participate in the Tri-Nations Lamb meetings between producers, their representative member associations and government members of the three nations – Australia, New Zealand and the U.S.A.  A total of nine official delegates formed the U.S delegation with approximately 10 members from New Zealand and 15 from Australia.  In conjunction with our Tri-Lamb meetings, annual meetings were also scheduled for M.L.A. and the Australian Sheep Meat Council.  The Tri-Lamb meetings between the three countries centered on common issues related to sheep industries:

During the formal session of the Tri-Lamb meeting on November  16, 2004 presentations were heard regarding each country’s check-off program, covering both on the amount of assessments and programs funded.  Both the Australian and New Zealand delegates expressed strong support and encouragement for the American lamb check-off program and the up-coming referendum.   

The delegates spent significant time discussing broad global trade issues as well as specific issues associated with market access in various countries.  When discussing the Free Trade Agreement (FTA) between the United States and Australia, the Australian delegation acknowledged that there will be no impact of the FTA on sheep meat trade or the respective sheep industries.

Recommendations and Accomplishments

            The following formal resolutions were agreed upon during the Tri-Lamb meeting:

Trade – WTO, Doha Round

·         That the Tri-Nations Lamb Group supports the need for substantial progress in the WTO Doha Round on liberalizing sheep meat markets currently restricted by barriers to trade.

·         That the Tri-Nations Lamb Group supports in principle an analysis into the potential benefits of sheep meat liberalization through the Doha Round.

Promotion

·         That the Tri-Nations Lamb Group supports sharing information on the timing and location of promotional campaigns in the US market.

·  Livestock Identification

·         That the Tri-Nations Lamb Group recognizes the necessity for effective and efficient livestock identification and traceability systems and agrees in principle to work collaboratively to develop systems and standards to ensure cost effective and practical outcomes in each of the participating countries.

·         That the Tri-Nations Lamb Group supports collaboration to optimize compatibility between member country systems for sheep identification and traceability.

Animal Health

That the Tri-Nations Lamb Group supports sharing information on:

·              Experiences with previous and future animal health campaigns and emergency responses.

·              Research and development priorities for animal health.

Tri-Lamb Communications

·         That the Tri-Nations Lamb Group aims to improve communications to producers on animal health and bio-security issues. 

Pilot Consumer Education Program

·         That the Tri-Nations Lamb Group supports the development of a pilot consumer education program in the United States market increasing the awareness of the nutritional and health benefits of lamb.

Tri-Nations Communications

·         That the Tri-Nations Lamb Group commits to developing an intranet reference library and to promote ongoing dialogue and management of information.  

Next Tri-Nations Meeting

The Tri-Nations Lamb Group will be next hosted by New Zealand in late 2005.  This grant is complete.

Website: http://www.nlfa-sheep.org/

Title: Howard Wyman Sheep Industry Leadership School Advancement

Scope: National Producer Education

Objective: The leadership school provides a unique educational forum designed to provide current and future sheep industry leaders a comprehensive understanding of the production, feeding, marketing and promotion practices currently being utilized. The school’s goal is to stimulate the attendees’ awareness of new technologies and enhance their problem solving abilities through an intense hands on and academic training program. This proposal will enhance the outreach of the leadership school and increase participation in the leadership school during for the 2004 program year.

Update:  The grant has been awarded and no report has been required.  For updates and information how to participate be sure to visit their website listed above.

Website: http://www.purdue.edu/

Title: Development of a Quality Assurance Program targeted to 4-H and FFA youth enrolled in small ruminant projects.

Scope: National Producer Education

Objective: The goal of this project will be to develop a national online quality assurance program for youth enrolled in 4-H and FFA sheep and goat projects.  More than 225,000 youngsters were enrolled in a sheep and/or goat project in the year 2002 (USDA, 2003). The number of animals marketed through the U.S. food chain from these projects represents a significant portion of the total number of sheep and goats marketed in a production year.

The proposed web based program will be available across the nation. Even though the target audience is intermediate age youngsters enrolled in these projects, the benefits will extend to other areas of the marketing chain. County educators, leaders, packers, feeders, and consumers should all benefit from a quality, comprehensive program that increases the quality of sheep and goats marketed. The proposed program would ensure that any participant in a youth small ruminant project will have available a standardized, high quality educational opportunity in the subject matter of small ruminant quality assurance.

The course will contain four modules. The first module will be course introduction, the second will deal with drug and additive use, the third module will educate about best management practices, and the fourth module will cover current topics and events that have industry implications. The program will be a web based program with the course content arranged by specific subjects within modules. Upon completion of the modules, students will take exams over the material. If they pass the tests, they will receive a certificate of completion of the small ruminant quality assurance program.

The course content will be designed to appeal to students of the target age. The materials will be web based, interactive, contain movie clips, pop up screens, and be paced to hold the attention of the target audience. The proposed program is much different than other available quality assurance programs in that it will be tailored to meet the needs and experience level of those enrolled in youth projects.

The project will be developed and implemented by a management team that includes specialists in the fields of small ruminants, livestock, youth and 4-H, distance learning, and veterinary medicine. The team has many cumulative years of educational experience and a previous record of accomplishing distance learning quality assurance programs. An ambitious, yet attainable, time line to accomplish the proposed objectives has been outlined.

Update: This grant is in the process of being awarded and no results are available at this time.

Website: http://www.texsalp.com/

Title: Objective interlotting of wool using laserscan technology

Scope: National product improvement and development

Objective: In 1995, a group of sheep and goat producers from Texas, Oklahoma and New Mexico joined together to create an innovative approach to marketing their product and Producers Marketing Cooperative, Incorporated (PMCI) was born. PMCI is a producer owned and controlled co-op which markets sheep and goat products and provides services for the maximum benefit of the membership while serving the needs of its customer base.  The headquarters for the operation is in San Angelo, Texas. The cooperative has taken a lead in wool preparation, packaging, and selection to enhance marketing options. In fact this is one of their main purposes and objectives.

PMCI has purchased a Sirolan Fleecescan™ which is a set of portable instruments for testing the fiber diameter of wool quickly and accurately.  The Fleecescan™ can more objectively class wool into specific average fiber diameter (ADF) categories than traditional methods. This is particularly important in areas of the country that raise fine wools. This technology has been available and used by commercial labs throughout the world. However, the use of the same technology to stratify wool by quality has not been available here in the U.S. until the purchase by PMCI.

In order to fully implement the Fleecescan™, the group must conduct a series of pilot runs to determine the most efficient and effective use here in the U.S. The reliability, accuracy, and precision must be validated on Southwest  wool. To be effective the program must create cost return to the growers and PMCI. Detailed time and labor records will be evaluated, analyzed, and recommendations made.  It will be critical to the overall success in implementing this technology that in the initial year the process can be evaluated objectively.  The grant funding will be used to conduct these critical assessments on US wools and will be available to benefit the entire wool industry in the future.

Update:

SEMI-ANNUAL REPORT TO THE

NATIONAL SHEEP INDUSTRY IMPROVEMENT CENTER

Fall 2004

INTRODUCTION

Producers' Marketing Cooperative Inc. (PMCI) undertook a project to determine the feasibility of interlotting wool by quality based on average fiber diameter (AFD) using Laserscan technology. PMCI developed a warehouse process that would segregate individual fleeces into specific AFD categories using Laserscan. This group used the Laserscan technology and computer software to track individual grower lots and separate according to the mentioned criteria. Various growers would have fleeces co-mingled into the specific groupings. This allowed more volume to be created in superfine categories. The objective would be to have volume attracting more interest from processors and hopefully higher prices since lots are of commercial size.

The Fleecescan system including the Laserscan, fleece-coring unit, snippet washer, and associated computer with software were delivered to Mertzon, Texas in early February. A certified Fleecescan technician arrived in late February to set up, calibrate and train personnel on the use, maintenance, and technical attributes of the Fleecescan. This process took approximately 200 man-hours.

METHODS

Once the Fleecescan was in place and operational PMCI started to process individual grower lots. Since no reference information was available on US wool some arbitrary guidelines were established based on markets. Single bales were unpacked and individual fleeces identified. Fleeces were then individually cored and fiber diameter determined on the Laserscan. Lots were segregated into three AFD categories: 18.5 micron (µm) and finer, 18.6-19.5 µm and 19.6 and coarser µm. These correspond to the wool loan categories of the USDA Farm Service Agency (FSA) Wool and Mohair Loan Program under the graded provisions. In addition these two finer divisions correspond roughly to the level where commercial price differentials are apparent.

Specific grower lots were targeted for separation using the Fleecescan based on previous knowledge of grower's genetic selection criteria and past commercial core test certificate results regarding AFD. Those growers with knon wool clips in the low 20 µm range or those that have utilized the Optical Fiber Diameter Analyzer (OFDA) from PMCI for genetic selection of finer quality replacements were identified and placed into the project for sorting.

Once a grower lot was identified for sorting, a single bale would be unpacked and individual fleeces sorted. If the finer two categories (19.5 µm and finer) amounted to 20% of the total in the initial bale, then the remaining bales were tested in that lot.

PRELIMINARY RESULTS

Approximately 7000 fleeces have been tested to date. Of all the fleeces tested 18.3% have been below 19.6µm for AFD (Table 1). This would include lots where an initial bale was tested but due to low percentages in the finer categories the remaining bales were not tested.

Table 1. RESULTS: PERCENT IN EACH MICRON RANGE OVERALL

February to July, 2004:6267 fleeces

Specific lots reported in Table 2 show micron range of division in percentage terms. Flock 3 had the highest combined percent (22.6%) in the 19.5 µm and finer categories. However, Flock 1 had a higher percent (5.3%) in the 18.6µm and finer category.

Table 2. RESULTS: PERCENT IN EACH MICRON RANGE BY RANCH

Once the lots were completed then certified core samples were taken and sent for testing at a commercial laboratory. The predicted result is a simple average of the fleeces going into the respective AFD categories. No effort was taken to weigh the individual fleeces. Results are shown in Table 3.

Table 3. RESULTS: PREDICTED VERSUS ACTUAL MICRONS