Money in sheep, says NSW DPI

Analysis shows that sheep enterprises are recording their best performance in many years.

The NSW Department of Primary Industries is reporting a rise in the value of sheep enterprises due to improvements in sheep meat and wool prices.

In 2016, sheep enterprises recorded their best performance in a decade as a result of improved prices and weather conditions.

The greatest improvements occurred in wool focused Merino enterprises, where gross margins rose as much as $9 per sheep (technically, per Dry Sheep Equivalent or DSE units).

“Over the last four years, wool incomes have steadily increased to the point where, in 2016, wool income is close to or greater than the highs experienced in 2011 and 2012,” the DPI reported.

“In reality all breeding enterprises are performing equally well as the range from highest to lowest is small, around $3.50/DSE.

“The high value of sheep meat and the strong demand for breeding ewes has provided the backbone for the strong performance of sheep enterprises generally.

“The increasing trend in wool value further increases confidence in the sheep industry while also reducing reliance on income generated from sale of lamb and surplus ewes.”

Higher wool prices have played a huge part in the jump in value, with wool making up 80% of the annual income on whether enterprises.

Upward trends in wool are key to boosting confidence across the industry as it reduces reliance on income generated from selling lamb and hogget ewes.

The DPI also found that self-replacing dorper enterprises were the cheapest to run, due to the fact they required little shearing, minimal replacement (rams only) and the lowest animal health costs.

Posted on Tuesday, 14 February 2017
in Latest News

sheep wool

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Money in sheep, says NSW DPI

Analysis shows that sheep enterprises are recording their best performance in many years.

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