How Imported Lamb Is Damaging the U.S. Sheep Industry

Most of the lamb sold in American grocery stores and restaurants does not come from American farms. In recent years, imported lamb has captured the large majority of the U.S. market—roughly 70–73% of total lamb and mutton consumption in 2024. Australia supplies the bulk of those imports (around 74%), with New Zealand providing most of the rest.

That shift has not been neutral. It has steadily weakened the U.S. sheep industry, reduced domestic production capacity, and put long-term pressure on American sheep producers.

Record Import Volumes and Lost Market Share

Lamb imports reached a record 309 million pounds in 2024—nearly 45% higher than 2020 levels. Total lamb and mutton imports climbed even higher. Meanwhile, the share of the market held by U.S. producers has continued to shrink.

When cheaper imported product floods the market, it undercuts prices for American lamb. Producers who raise sheep under higher U.S. labor, regulatory, land, and predator-control costs struggle to compete on price alone. The result is lost sales, tighter margins, and fewer incentives to expand or even maintain flocks.

A Shrinking American Sheep Flock

The numbers tell a clear story of long-term decline. U.S. sheep and lamb inventory has fallen to historic lows—around 5 million head. Decades ago the national flock was many times larger. Full-time commercial sheep operations have also declined sharply. Many multi-generation ranches have exited the business or scaled back dramatically.

Lower domestic production creates a feedback loop: fewer sheep mean less processing infrastructure, fewer specialized services, and reduced industry capacity overall. Once that capacity disappears, it is difficult and expensive to rebuild.

Why Imports Hold a Competitive Edge

Several structural advantages favor Australian and New Zealand lamb in the U.S. market:

•  Currency exchange rates have often worked in favor of imports.

•  Production costs overseas are generally lower.

•  Different regulatory environments and access to certain tools or medicines create cost differences.

•  Large-scale export systems are optimized for the American market.

These factors allow imported lamb to arrive at prices that frequently undercut domestic product. American producers face higher costs for labor, land, compliance, and predator management that their foreign competitors do not fully share.

The Cost to American Farms and Rural Communities

When domestic production shrinks, the impact reaches beyond individual ranchers. Rural economies lose income, jobs, and the supporting businesses that depend on a healthy livestock sector. Processing plants, feed suppliers, veterinarians, and equipment dealers all feel the effects.

There is also a food-system risk. Heavy reliance on imported lamb leaves U.S. consumers more dependent on foreign supply chains. Weather events, shipping disruptions, trade disputes, or policy changes overseas can affect availability and price in ways that a stronger domestic industry would buffer.

Rising Demand, Missed Opportunity

U.S. demand for lamb has grown in recent years. That should have been an opportunity for American producers to expand. Instead, much of the increased volume has been filled by imports. Domestic production has not kept pace, and in some periods it has continued to decline even as consumption rose.

Industry groups, including the American Sheep Industry Association, have documented the injury and formally requested federal investigation into whether rising imports constitute a substantial cause of serious harm to U.S. producers. The concern is not abstract—it is about the survival of remaining commercial sheep operations.

What Consumers Can Do

Every purchase is a signal. Choosing American lamb—especially from known local or regional farms—directly supports domestic production capacity. It helps keep more of the value in U.S. rural communities and rewards producers who raise animals under American standards and conditions.

At Grizzly Acres Farm we raise pasture-based hair sheep and sell direct to customers who want to know exactly where their meat comes from. Supporting farms like ours is one practical way to strengthen the domestic sheep industry rather than further eroding it.

Imported lamb has already captured the majority of the U.S. market and contributed to a decades-long contraction of American sheep production. The question now is whether enough consumers and policymakers will act before the remaining domestic capacity shrinks even further.

Buying American lamb is not just a preference. For the future of the U.S. sheep industry, it is a necessary choice.