A severe deficit of breeding ewes across Australia was always going to put extreme pressure on the store sheep market once there was widespread rain.
This is exactly what happened in the first months of 2020, and when key regions had drought breaking rain, a scramble to restock paddocks against a 116-year flock low began.
A question on the factors affecting current buyer behaviour, and thus what key elements vendors should look to achieve when selling, has prompted the AuctionsPlus Market Insights team to analyse data of scanned-in-lamb (SIL) ewes.
We looking at the potential premiums a seller receives when offering SIL Merino ewes on AuctionsPlus, marketed as SIL nominating multiples and singles versus being sold as just SIL.
We've reviewed sale data from SIL Merino ewes sold online between January and July 2020.
Like other sheep markets, SIL ewes have skyrocketed in value.
There was 45 per cent growth from December 2019 when SIL Merino ewes were averaging $180, to July 2020 where they are averaging $260.
Nathan Harris of Nathan Harris Scanning in Baradine, has seen his clients utilise this knowledge to take their businesses forward.
Mr Harris said from both a management and selling perspective, the extra knowledge is invaluable, to understand the nutrition that single ewes and multiple ewes need is critical.
Obviously, there is an extra cost involved for the seller, sitting around an additional 25cents a head, however that is negated when selling.
"When scanning for clients, they know that buyers want more knowledge and will pay more for that," Mr Harris said.
To measure this, we looked at the average price that SIL Merino ewes sold for when the percentage of multiples is nominated, against the average price for Merino ewes sold only as SIL.
The data highlighted the immediate value that a grower receives when selling ewes nominating multiples and singles, with an average of a $23/head more to be received.
Even when selling Merino ewes with 10pc multiples and 90pc singles, there is a $14 premium than marketing those same ewes as just SIL.
From a buyer's perspective livestock agent Adam Chudleigh, McCarron Cullinane Chudleigh, Forbes, said he and his buyers always gain more confidence when buying SIL ewes with multiples and singles nominated.
"Buying nominated multiples gives our clients the confidence that they will get the lambs on the ground, providing them with many options to sell," Mr Chudleigh said.
"Either into the store market to make a quick return or to feed through to hit the fat market."
He also highlighted the value that the added assurance and confidence provided when buying scanned and nominated stock.
"If vendors are willing to spend the extra money they deserve to receive additional value due to their management practices," he said.
Reflecting on market results is the best indicator to dictate future buyer behaviour and see exactly what they are after.
The cost of scanning for singles and multiples has seen on average, a considerable price premium.
It is clear that more information provided by the vendor offers an added level of confidence to the buyer increasing the likelihood of higher returns.
Have you signed up to The Land's free daily newsletter? Register below to make sure you are up to date with everything that's important to NSW agriculture.