AS wool’s Northern Market Indicator (NMI) has increased by as much as 30 per cent in the past 12 months (to 1641 cents a kilogram) the commodity is now certainly helping to hold up prime mutton and Merino lamb prices.
Australian Wool Network Central West NSW regional manager Brett Cooper, Mudgee, said the NMI had risen 15pc since Christmas with 17-micron wool jumping 59pc since March last year.
“Nineteen- and 21-micron wool rose 38pc and 10pc respectively, however, the down side is with crossbred wool,” he said.
“Crossbred wool isn’t doing too well at present with 25- to 28-micron wools dropping in value by as much as 8pc.”
There are now some cross breeders with sheep growing 30 to 34 microns wondering if the wool price will cover their shearing costs.
Landmark Dubbo’s northern wool manager David Hart said the mathematics was very simple.
“I’m getting enquiries from clients and stock agents wanting to know how much a certain wool type on a sheep is worth,” he said.
“They’re asking so they can make a decision on whether to shear prior to selling or sell in wool.
“Selling offshears has got to add value to a sheep for the seller.”
Mr Hart said given the relative decline in crossbred wool prices and the lift in Merino wool types it might make a few more people decide to run Merino ewes for a first cross lamb instead of a crossbred ewe for a second-cross lamb,” he said.
However, Gilgandra based Christie and Hood agent Paul Alchin believes wool only plays a part on woolly sheep.
“It’s more than just the sheep with wool that are selling well.
“Be it prime lambs or mutton, the market across the board is strong.”
Mr Alchin said mutton coming forward with good wool length was selling well.
“But I don’t know that they are selling any better per kilogram of carcase than what a shorn sheep would be selling.
“Processors would be getting a nice little bonus out of buying woolly sheep if they are fellmongering the skin.
“But I think it would be a bit of a stretch to say that wool was driving the market.”
Mr Alchin believes processors would like to be buying lambs cheaper than what they are at present.
“Yet the mutton market continues to rise.
“The market they are selling our mutton into is till competitively strong compared to where we are selling our lamb meat.”
He said the dollar a head side of the equation was not the relative figure.
“It’s the carcase weight in cents a kilogram that is the figure you really need to compare.”
Wool a major lamb income at Armatree
WOOL is now underpinning the Merino and crossbreeding programs of the Mudford family at Armatree.
Noel Mudford said the prime lamb enterprise had kept his family’s sheep business going.
“It’s nice to see wool beginning to underpin the industry at last,” he said.
“But it’s been the carcase side that’s kept us going, that’s for sure.
“Actually, there wouldn’t be any sheep if it wasn’t for the prime prices.”
Mr Mudford and wife, Norma, run a mixed-farming enterprise of 3500 Merino ewes of Parkdale and Wallaloo Park blood with their two sons, Brian and Stuart and their families based on “Wilgadeen”.
After this month’s rain they are now busy on the tractor sowing barley, chickpeas, faba beans and lupins plus oats for sheep grazing and grain.
“We will finish off our lambs on the oats,” he said.
A third of the Mudfords’ ewes growing 19.5- to 20-micron wool and an average six kilogram fleece are joined to Coolalee rams while younger ewes go to Merino sires with all ewes lambing an average 100 per cent.
Surplus ewes are sold August/September through AuctionsPlus as five to 5½ year olds while the tail-enders are marketed through Dubbo saleyards off shears.
“The AuctionsPlus ewes with seven months wool last year averaged $153 while the tailenders made $101 off shears with their wool probably being worth another $20,” Mr Mudford said.
Merino wethers sell at 11 to 12 months off shears or about six weeks later.