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Sheep CRC reaps profits from drought recovery

25 Oct '06
4 min read

The Sheep CRC has developed a new tool to help woolgrowers make the right financial decisions when culling or re-stocking. “Drought is grim, but if we look beyond the immediate hardship, it is also a rare chance to lift the productivity of the Australian sheep flock by up to half."

“Getting rid of the poor performers would boost national wool earnings by $200-700 million post-drought. That's $2000-7,000 more profit each year for 5 years or more for the average grower.”

Merino sheep vary greatly in fibre diameter, fleece weight and body weight. The Sheep CRC's software makes it possible to calculate the long term dollar value for each animal – and use it to make sound culling and buying decisions.

“In all flocks, the top 25 per cent of ewes earn three times more than the bottom 25 per cent. If the average value of the flock is $40/head then the bottom sheep are each worth around $20 whereas the top ewes are worth $60. This variation simply does not exist in cattle."

This is a very rare opportunity to retain, or purchase, high quality ewes - but careful selection is essential. Prof. Rowe says the most important measurement affecting value of Merinos is fibre diameter – particularly if the flock average is 20 microns or less. Fleece weight is the next most valuable. Body weight and condition are also important as they affect the sale price for meat and the animal's ability to withstand the drought.

“Using our technology – which is free to the industry - this basic information can easily be turned into a drafting decision to maximize the return from immediate sale of sheep for meat and the long-term benefits of retaining the right animals for wool production."

An investment of $1.10-$1.50 per animal in measuring fibre diameter and liveweight in order to cull 30% of the least valuable ewes can yield a return on investment of around 50% in the first year alone. These benefits multiply as the flock rebuilds.

The Sheep CRC promotes collaborative scientific research and education at the wool and meat interfaces to ensure the Australian sheep industry has the technology and know-how to deliver, in a profitable and sustainable manner, products highly desired by domestic and export customers.

The Sheep CRC

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