Commentary by Bill Bullard, CEO, R-CALF USA

The U.S. sheep industry reveals what happens when our nation ignores market failure for too long, and it’s a case study applicable to every livestock sector in America. So, let’s examine market failure.

Market failure occurs when a market functions contrary to the forces of competition, meaning when it defies the economic law of supply and demand. Looking at the sheep industry, we see demand for lamb meat has increased substantially for longer than the past decade, beginning in 2012.

Although consumption is not the same as the economic term “demand,” it can be viewed as a proxy for demand when consumption begins a long-term upswing. And that’s exactly what’s happening in the sheep industry – consumers are purchasing more lamb and paying higher

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