AFTER persisting with a crossbred sheep operation for ten years, a Gundagai producer has decided to return to a traditional Merino flock after cold hard facts proving their profitability and manageability became too obvious to ignore.
Currently running 2500 Merino ewes and 2000 first-cross Merino Border Leicester ewes, James Derrick, Karoola Station, Gundagai, near Wagga, declared his operation will only consist of a self-replacing Merino flock by lambing season in 2017.
Mr Derrick was selected as one of numerous Australian Association of Stud Merino Breeders case study sites, after his on-property feedlot revealed high profitability outcomes for the breed.
He said only a 40 gram weight gain difference was recorded between Merino and second-cross lambs in the feedlot, saying although crossbred sheep are more accepted as meat producers, the Merino is a more valuable meat source.
He also said, currently a six-month-old Merino lamb cuts about $18 per head (/hd) of wool and when dressed out at 22 kilograms carcase weight for $4.80 per kilogram, the lamb will gross $123.60/hd.
“If the $50 purchase price, cost of feeding at $22 and a shearing cost of $5 is deducted, this gives an approximate profit margin of $46.60/hd,” Mr Derrick said.
“There is a $1 per kilogram difference between second-cross and Merino lambs, but once you factor in the wool shorn off a Merino, it becomes a $30 difference in the returns - with the Merino well ahead of the crossbred.”
