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Small Livestock Industry Faces Decline as Consumers Shift
Economics

Small Livestock Industry Faces Decline as Consumers Shift

New data reveals a significant drop in small livestock production, driven by structural challenges in personal farming and a consumer shift toward more affordable protein options.

Kommersant2h ago
3 min read
📋

Quick Summary

  • 1Production of sheep and goats for slaughter decreased by 6.
  • 2Conversely, production of poultry and pork has increased as consumers actively seek out more budget-friendly meat alternatives.
  • 3This trend highlights a significant shift in both the agricultural sector and consumer purchasing habits.

Contents

Market Shift OverviewProduction DeclinesRoot CausesConsumer Behavior ChangesMarket ImplicationsFuture Outlook

Market Shift Overview#

The agricultural sector is witnessing a notable transformation in meat production trends. Recent figures indicate a sharp contraction in the small livestock market, specifically regarding sheep and goats.

While traditional farming struggles, a clear pivot toward more economical protein sources is reshaping the industry landscape. This shift reflects broader economic pressures affecting both producers and consumers.

Production Declines 📉#

Between January and November of 2025, the volume of sheep and goats sent to slaughter fell by 6.3%. This reduction signals a growing crisis within the sector that has historically relied on small-scale operations.

The data suggests this is not a temporary fluctuation but rather a symptom of deeper, ongoing issues. The reduction in slaughter numbers directly impacts the supply of lamb and mutton available in the market.

  • Sheep and goat slaughter down 6.3%
  • Period: January–November 2025
  • Reflects ongoing industry struggles

Root Causes#

The downturn is driven by structural problems deeply embedded in the industry's current model. Over 90% of the nation's small ruminants are raised in personal subsidiary farms.

These small-scale producers are currently facing a difficult environment. They are squeezed by rising input costs and a simultaneous contraction of sales channels, making it increasingly difficult to maintain profitability and sustain operations.

Consumer Behavior Changes#

While small livestock numbers dwindle, the opposite trend is occurring for other meats. Production of poultry and pork has seen a marked increase during the same period.

This surge is directly linked to changing consumer habits. Shoppers are increasingly prioritizing budget-friendly options, leading to a transition away from traditional lamb and mutton purchases toward more affordable alternatives.

Market Implications#

The divergence in production trends paints a clear picture of a market in flux. The struggles of personal subsidiary farms are reducing the availability of specific meats, while consumer demand drives the growth of the poultry and pork industries.

This creates a feedback loop where reduced supply and high costs of small livestock further encourage consumers to look elsewhere, potentially cementing this new market hierarchy if the underlying structural issues are not addressed.

Future Outlook#

The data from the past year suggests that the small livestock sector is at a critical juncture. Without intervention to address the rising costs and sales difficulties facing small producers, this downward trend is likely to continue.

For the foreseeable future, the market appears to be consolidating around large-scale poultry and pork production, driven by the economic realities facing the average consumer.

Frequently Asked Questions

The decline is attributed to structural problems within the industry, specifically the challenges faced by personal subsidiary farms. These small producers are struggling with rising costs and a reduction in available sales channels.

Production of poultry and pork has increased. This growth is largely driven by a shift in consumer behavior, as people are increasingly choosing these meats due to their lower price points compared to lamb and mutton.

Personal subsidiary farms are the backbone of the small livestock industry, accounting for over 90% of all sheep and goats. Consequently, their economic struggles have a massive impact on the overall production numbers.

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