Sheep - Economic Importance

Economic Importance

Sheep are an important part of the global agricultural economy. However, their once-vital status has been largely replaced by other livestock species, especially the pig, chicken, and cow. China, Australia, India, and Iran have the largest modern flocks, and serve both local and exportation needs for wool and mutton. Other countries such as New Zealand have smaller flocks but retain a large international economic impact due to their export of sheep products. Sheep also play a major role in many local economies, which may be niche markets focused on organic or sustainable agriculture and local food customers. Especially in developing countries, such flocks may be a part of subsistence agriculture rather than a system of trade. Sheep themselves may be a medium of trade in barter economies.

Domestic sheep provide a wide array of raw materials. Wool was one of the first textiles, although in the late 20th century wool prices began to fall dramatically as the result of the popularity and cheap prices for synthetic fabrics. For many sheep owners, the cost of shearing is greater than the possible profit from the fleece, making subsisting on wool production alone practically impossible without farm subsidies. Fleeces are used as material in making alternative products such as wool insulation. In the 21st century, the sale of meat is the most profitable enterprise in the sheep industry, even though far less sheep meat is consumed than chicken, pork or beef.

Sheepskin is likewise used for making clothes, footwear, rugs, and other products. Byproducts from the slaughter of sheep are also of value: sheep tallow can be used in candle and soap making, sheep bone and cartilage has been used to furnish carved items such as dice and buttons as well as rendered glue and gelatin. Sheep intestine can be formed into sausage casings, and lamb intestine has been formed into surgical sutures, as well as strings for musical instruments and tennis rackets. Sheep droppings, which are high in cellulose, have even been sterilized and mixed with traditional pulp materials to make paper. Of all sheep byproducts, perhaps the most valuable is lanolin: the water-proof, fatty substance found naturally in sheep's wool and used as a base for innumerable cosmetics and other products.

Some farmers who keep sheep also make a profit from live sheep. Providing lambs for youth programs such as 4-H and competition at agricultural shows is often a dependable avenue for the sale of sheep. Farmers may also choose to focus on a particular breed of sheep in order to sell registered purebred animals, as well as provide a ram rental service for breeding. The most valuable sheep ever sold to date was a purebred Texel ram that fetched £231,000 at auction. The previous record holder was a Merino ram sold for £205,000 in 1989. A new option for deriving profit from live sheep is the rental of flocks for grazing; these "mowing services" are hired in order to keep unwanted vegetation down in public spaces and to lessen fire hazard.

Despite the falling demand and price for sheep products in many markets, sheep have distinct economic advantages when compared with other livestock. They do not require the expensive housing, such as that used in the intensive farming of chickens or pigs. They are an efficient use of land; roughly six sheep can be kept on the amount that would suffice for a single cow or horse. Sheep can also consume plants, such as noxious weeds, that most other animals will not touch, and produce more young at a faster rate. Also, in contrast to most livestock species, the cost of raising sheep is not necessarily tied to the price of feed crops such as grain, soybeans and corn. Combined with the lower cost of quality sheep, all these factors combine to equal a lower overhead for sheep producers, thus entailing a higher profitability potential for the small farmer. Sheep are especially beneficial for independent producers, including family farms with limited resources, as the sheep industry is one of the few types of animal agriculture that has not been vertically integrated by agribusiness.