Flock rebuild a priority for peak Merino body

The association's new president, Max Wilson, said most wool and meat producers across the nation were in a flock rebuilding phase.

He said confidence in the sector was strong heading into this year's Merino and Poll Merino ram selling season.

"Growers are riding high on the back of solid red meat prices and a continual strengthening of wool values due to low supplies," he said.

"At the same time, stud stock breeders have been continuing to invest in protecting their best genetics through the recent series of prolonged drought years.

"So, this year's sire offerings will continue to be of the highest quality."

Former AASMB president, Peter Meyer, who handed over the reins to the association at this year's annual general meeting, said seasonal conditions were above average to excellent in most of the nation's sheep production areas.

He said growers would benefit from investments made by breeders into genetics to suit all types of wool and dual-purpose sheep enterprises in all environments.

In his own farming area near Clare, in the mid-north of South Australia, the Mulloorie Merino and Poll Merino stud principal said it had been not a great start to the year for his family, with a dry period meaning they had to buy-in feed.

The Meyers still managed lambing percentages of 120 to 130 per cent and had good winter crop establishment.

Having been involved in sheep breeding since the late 1970s with his family, Mr Meyer said when he became AASMB president in 2018 he was particularly keen to extend the implementation of its Breed More Merino Ewes campaign, which started in 2016.

This initiative aims to have Australian sheep producers mate five million more ewes to Merino rams to boost the national sheep flock.

Sheep numbers have this year fallen to an estimated 63 to 64 million head (sheep shorn).

This is down from 72.5 million head in 2018-19 and only just over a third of the size of the peak national sheep flock in the 1970s, when it hit 180 million head.

"Industry stakeholders recognise that sheep producers need to breed more Merino ewes to ensure there is a critical mass to service and supply the meat and wool supply chains that are integral to their operations," Mr Meyer said.

"We need more Merino ewes to mate to Merinos for wool and meat and mate to Border Leicesters - and other breeds - to produce females to go into terminal lamb production systems.

"Increasing the ewe base will ensure that all those with an interest in the sheep and wool sectors can continue to grow and prosper.

"The Merino really is the backbone of Australia's sheep industry."

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Mr Meyer said Merinos were easily the most profitable sheep to run and provided a reliable income for those in risky seasonal areas - and a saleable product at all ages.

"The Australian Merino is an all-purpose sheep," he said.

"It is the ultimate wool producer, competes well on the meat front and is a high-value mother for prime lambs.

"Its ability to adapt, thrive and grow in areas and in seasons where other sheep may fail is testament to its resilience and versatility.

The Breed More Merino Ewes campaign focuses on promoting the value of Merinos in producing the best natural fibre, providing high yielding and great tasting meat, and being a profitable breed.

Through this initiative, Mr Meyer said the AASMB and industry partners had been spreading the message about the importance of Merinos to the whole supply chain - and the higher financial returns generated by the dual-purpose breed for producers.

He said it was difficult to gauge the success of the program because many eastern states sheep producers had been forced to rapidly destock their sheep in 2017-19 due to prolonged drought - some having to sell 50 per cent or more of their flocks.

"It was lucky Western Australian growers were able to send sheep to the east, but that has significantly impacted on the numbers in that state," Mr Meyer said.

"It has been estimated that 1.5 million ewes and 0.5 million head of younger stock crossed the border.

"And in the north, Queensland producers are grappling with wild dogs decimating their flocks - but it seems fencing is making a big difference there now.

"This means the whole of the country is now in a sheep flock rebuilding phase."

Mr Meyer said despite the severe difficulties of the drought, eastern states Merino breeders had invested heavily in maintaining their best-performing genetics.

"Some spent up to $1 million to feed their ewe base during the drought years to protect their genetic investments and will be offering top quality breeding stock at their 2021 stud sales," he said.

"In the west, Merino breeders have been confident of continued strong demand for their breeders and investing to get genetics right.

"They are aiming to provide the right key profit-driving traits for producers to maximise returns per hectare from wool, terminal breeding, lamb and mutton.

"So, they too, will have the best of the best rams on sale this year."

Mr Meyer said Merino sheep gross margins stacked up well against other livestock enterprises - and cropping in more marginal areas - and provided diversity of income, reducing overall business risks.

He said, although wool prices remained volatile, the finer categories had continued to reap good rewards during COVID-19 retail upheavals and bread-and-butter medium types had experienced a recent resurgence when China released its public servant uniform orders.

"We are still seeing 19 and 20-micron clips fetching around $2000 per bale and the outlook from many analysts is that conditions will continue to improve as retail conditions recover," he said.

"Wool is ideally placed to fit consumer requirements for natural products that have provenance - or a story - that can be traced back to the paddock and are grown in a sustainable manner."

The AASMB is the peak organisation for Australian Merino breeders and represents the six state Merino organisations.