Recently I had the opportunity to visit both Australia and New Zealand, as part of the SheepNet National Facilitators tour, with the aim of exchanging knowledge and experiences on how to improve ewe productivity. SheepNet is an EU-funded project on sheep productivity and involves the six main EU sheep producing countries (Ireland, France, United Kingdom, Romania, Spain and Italy) and Turkey. Ewe productivity (number of lambs reared per ewe joined), which has been static for the past few decades, is a combination of reproduction success, embryonic and lamb survival and litter size.

My objective, in this article, is to present information on the Australian sheep industry and on some of the farms that we visited.

Australian sheep industry

The sheep industry in Australia has been transformed over the past 25 years. In the 1990s Australia consumed 85% of its sheepmeat production. Today, Australia is the world’s largest sheepmeat exporter and exports 57% and 92% of its lamb and mutton production respectively. The number of lambs slaughtered for human consumption has increased by 25% during the last 10 years. Currently 22.9m lambs and 6.9m mutton animals are slaughtered annually. Australia now produces approximately 0.67m tonnes of sheepmeat carcase weight annually. The value of the sheepmeat industry is approximately AU$5.2bn (€3.36bn @ €1 = AU$1.56) and is increasing annually. Australians consume 9.5kg sheepmeat per person annually.

The USA, China, United Arab Emirates and Qatar are the main markets for Australian lamb accounting for 22%, 16%, 9% and 7% of lamb carcase exports, respectively. Australia exports 1.8m live sheep annually and is the world’s third largest exporter of live sheep with the main markets being Kuwait, Qatar, United Arab Emirates and Oman.

Surprisingly, given the major output changes indicated above, the number of sheep in Australia has declined dramatically over the past 25 years. In 1990 there were 170m sheep. Now there are 68m sheep, of which 37m are breeding ewes; about 75% of these are Merino.

Since 1990 the volume of wool produced has declined by 60%. Thus, the Australian sheep industry has changed focus, changing from being predominantly wool orientated to a combination of meat and wool.

The composition of the national flock has changed in the past 25 years due to an increase in non-Merino sheep for wool and meat production.

Farm quality assurance is seen as essential in gaining and maintaining market access. Once a market is accessed then it’s up to the marketer’s to do their job and increase Australia’s share of the market.

Wool production is an important commodity in the Australian sheep industry. The value of the wool industry is approximately AU$3bn (€1.52bn). The price that producers receive for wool increased by 35% in the last year. Currently Merino wool, because of its fine fibre, is achieving AU$17/kg (€11/kg) and a Merino ewe will produce up to 7kg of wool.

At farm level

Sheep farms in Australia are very large relative to Irish flocks. The mean number of ewes joined with rams on Australian sheep farms is 1,390. The shift in focus from wool production to meat production, and thus the use of meat-sheep breeds has resulted in an increase in the number of lambs reared per ewe joined. The average number of lambs reared per ewe joined is 0.95 and has increased by 10% over the last 10 years. It is estimated that lamb mortality is approximately 30% and that 70% of lamb deaths occur in the first 48 hours post-lambing.

Farm gate prices

Australian sheep producers are in a good space at the moment considering the prices that they are receiving for their produce. During our visit producers were receiving AU$6.30/kg (€4/kg)carcase plus a payment for the skin (AU$13 or €8.33/kg and AU$5 or €3.40/kg for Merino and crossbred lambs, respectively). Prices have increased approximately 20% on 2016 levels. The optimum lamb carcase weight is between 25kg and 27kg but farmers are not discounted for carcasses between 18kg and 32kg.

Farm visits

The first farm that we visited was 100km northeast of Adelaide. This farm had sheep (both for wool and lamb) and cattle. On the home farm (650 ha) there were 1,100 ewes and 200 beef cows plus their calves. The mean annual rainfall was 620mm. The farmer also had an out-farm consisting of dry hill which received 400ml of rainfall annually.

Due to the low rainfall on the out farm stocking rate was low, being one ewe per 1.25ha. This region of Australia suffers from drought during the summer. To manage pasture there are a total of 130 paddocks and a 90-day rotation is employed.

Labour consists of the farmer and his father. Fencing and shearing is contracted out. The biggest issue at the time of our visit was to ensure that all water systems were working and that animals had access to water.

The ewes lamb outdoors in June (spring time). Lambs receive their first anthelmintic drench at weaning (14 weeks). On our visit the lambs were weaned and most had been drafted for sale. Lambs yet to be drafted were on concentrates for finishing. Lambs in the previous draft made AU$6.30/kg (€4/kg)carcase plus AU$10 for the hide as they were Merino lambs. The wool had been sold at AU$16/kg (€10.25/kg).

The farmer had completed a knowledge exchange programme aimed at increasing ewe lifetime performance. This course consisted of six days, one day on each participant’s farm, where they discussed factors influencing ewe lifetime performance including condition score, nutrition and pasture management. The cost of the course was $2,100 (€1,346)per participant. On completion of the course the farmer received $1,200 (€769)from the Australian Wool Innovation and Meat and Livestock Australia levy bodies.

The second farm we visited produced sheep and cereals. The farm was in a very dry region and prone to wild fires. A major fire occurred in this region three years ago and destroyed the cereal crop, the farmyard and the adult ewe flock. Luckily the ewe lambs survived the fire and this enabled the farmer to regenerate his flock.

Today the flock consists of 750 pedigree White Suffolk ewes. The White Suffolk was developed from the cross between Poll Dorset x Suffolk and Border Leicester x Suffolk to produce a breed with the conformation, structure and growth of the Suffolk but with a white head, legs and body because any black colour in wool reduces its value and the value of the skin. Lambs in this flock are tagged at birth to collect data and identify parentage.

All lambs have individual faecal egg counts undertaken to determine estimated breeding value (EBV) for worm resistance. Most rams are sold at an annual auction, held on the farm, to producers who own Merino sheep. This farmer is very aware of biosecurity and is reluctant to bring any animals on the farm due to the risk of importing disease and resistant worms. Consequently, when breeding ewes he uses a lot of AI. When asked what do producers look for when purchasing rams his reply that: “Most producers select rams on looks first and then EBV”.

Our last visit was to a feedlot that finishes up to 70,000 animals annually. As annual rainfall is only 300ml the lambs are in outdoor pens in groups of 300. Target carcase weight is 25kg to 27kg. The last batch of lambs sold to the abattoir returned AU$6.20/kg (€3.50/kg) carcase plus AU$13 (€8.33) for the skin in the case of Merino lambs and AU$5 (€3.20)for the skins of crossbred lambs. On arrival to the feedlot the lambs are introduced to a starter ration consisting of oats, lupins, pellets and hay. By day 14, the lambs are on their finishing diet consisting of barley, lupins, pellets and a little straw. Lambs remain on feed for 70 days prior to slaughter. The grain offered in the feedlot is home grown.

Conclusion

  • The Australian sheep industry has changed focus from being predominantly a wool producer to a producer of both meat and wool.
  • Australia is the world’s largest lamb and sheepmeat producer with an annual output of 0.67m tonnes of sheepmeat.
  • There is real optimism among sheep producers.
  • Wool price has increased by 35% in the last year and is making AU$17/kg for Merino wool.
  • Target carcase weight is between 25kg and 27kg. Lambs are currently returning about AU$6.30/kg carcass
  • Will a rising tide lift all boats?
  • *Dr Tim Keady is principal research officer based in Animal and Grassland Research and Innovation Centre, Teagasc, Athenry, Co Galway.