MEAT Sector Analyse

Meat Sector Study
A milk sheep could deliver 70 litres of milk annually which equivalents to LEK 7,000. The
alternative would be to feed a lamb which could be sold with 20 kg live weight for LEK 7,000
or eventually with 30 kg live weight for LEK 9,000.
Table 6: Revenues per sheep and year; meat vs. milk
Lamb (meat) 20 kg 350 Lek/kg 7000
or 30 kg 300 Lek/kg 9000
Sheep (milk) 70 l 100 Lek/l 7000
(Source: Expert’s calculation, 2010)
Milk versus meat, the utilization of milk
The decision of using milk either for selling it to dairies or for fattening of the lambs should be
based on the conversion rate milk to meat and the prices for the different products. The
current conditions (2010) are summarized in the following table.
Table 7: Break - even points for milk and meat
Assuming 6 kg of milk, necessary to grow 1 kg of live weight in lambs, only a meat price of
600 ALL/kg LW would valorise the milk with 100 ALL / kg of milk, currently paid by the dairy
processors in Saranda. (right arrow).
During the top season, at live weight prices of 450 ALL (Saranda, December 2009), the litre
of milk would be valorised with 75 ALL through feeding, against the 100 ALL which are paid
by the dairy, hence clearly in favour of selling the milk (central arrow).
When meat prices fall to the level of 300 ALL / kg LW , the litre of milk is valorised equally
(break - even) through feeding to the lamb and to selling of milk, at a milk price of 60 ALL /
litre, which is close to the conditions reported in Korca in the southern part of the country (left
arrow).
Although – as shown above - the price relations are clearly in favour of milk production, the
farmers however underlined that they intend to produce both: milk and meat, probably to
Meat Sector Study, page 18