Insight: Wool producers switch to shedding breeds

Wool producers are finding ways to step out of the sector as issues relating to labour shortages, input cost pressures and decreasing commodity values take hold.

Wool producers are increasingly switching to shedding breeds or moving out of the sector as issues relating to labour shortages, input cost pressures, and decreasing commodity values take hold.

Alternate enterprises being leveraged by frustrated farmers range from scaling back livestock numbers to plant crops, selling flocks of sheep for cattle agistment, increasing hay production where possible, taking a year off or exiting the industry.

WoolProducers Australia president Steve Harrison said wool growers were not immune from a confluence of issues impacting the agriculture industry, with even “diehard” producers investigating shedding breeds.

“With the price of wool and unavailability of shearers, more and more producers are moving over to shedding breeds that do not require shearing or crutching,” Mr Harrison said.

“I know diehard-wool growers running 10,000 Merinos who suddenly have a flock of shedders to see how they perform.

“The price of lambs has come back. We only have to look at Merino lambs currently selling at $60 to $70 unshorn and shedding breeds making $370 to $400 per lamb.”

WoolProducers Australia president and Giffard West farmer Steve Harrison. Picture: Jake Nowakowski

Mr Harrison said while labour shortages had created headaches for producers, the tipping point for many to switch to shedders was to avoid issues relating to some shearers “demanding to be paid in cash.”

He said major production delays due to flooding and extreme weather had compounded the issues.

“I am glass half full, and next year should be better, but this one is going to be a difficult one,” Mr Harrison said.

“Input costs do not look like falling. We really need three times the amount of money for wool than we are getting at the moment, and crossbred wool production prices are not even covering shearing costs.

“Mutton has hit a brick wall, and the price of lamb may be on the cusp of coming back as well.”