Shearer shortage an industry nightmare

Sheep producers are in a desperate scramble to get their stock shorn as the shearer shortage bites hard after a wet spring.

Australia’s shearing industry is stretched to breaking point as it struggles to service a burgeoning national flock.

A perfect storm of a wet spring, a jump in Covid cases and a competitive labour market is making it nearly impossible for some producers to secure shearers on time or even at all with the industry looking to India in the hope of sourcing staff.

The shortage also has some suggesting seasonal rates for shearing, where producers would have to pay more to get sheep shorn at peak periods such as spring and autumn.

There’s a big shortage of shearers across Australia this season, as rain delays caused by the wet spring compound the shortage of shearers.

Gippsland farmer and WoolProducers Australia president Steve Harrison had a team of shearers booked last week but ended up on the handpiece himself as some of the promised staff didn’t show up.

“It is a nationwide problem and we know that shearing contractors are under real pressure and appreciate it is hard for them to secure shearers,” Mr Harrison said.

“Shearing programs have been thrown out the window and we have been hearing reports of extra above the award being offered to secure shearers.”

The current shearing award is $3.47 a sheep but Mr Harrison said he knew no one who was paying this.

“It seems everyone is paying at least $4-$4.50 and I’ve heard of offers of up to $7 but paying more will not help the shortage go away,” he said.

Spring rain has not only delayed shearing programs due to wet sheep but has also slowed turnoff of prime lambs.

And with the now bumper spring, producers have the option to hold both lambs and older sheep, but both groups will need to be shorn before being fattened over summer adding to the workload.

NEWS: Growers are paying up to $7 to get their sheep shorn, well above the award rate.

Nutrien North East Victoria and Gippsland wool representative Jarrod DeMarco said at least 60-70 per cent of his clients had either delayed shearing or could not find shearers.

“A client I spoke to this week had three shearers booked to start shearing 3000 to 4000 sheep, and two learners turned up and shore 130 for the day,” Mr DeMarco said.

“I have another client who usually shears in October-November and doesn’t think he will get anyone until after Christmas.

“Then anyone who is delayed is hit again as the wool is overlength and gets discounted.”

Mr DeMarco said growers waiting would have to “get in line and bide their time” given the shortage.

Jason Letchford from the Shearing Contractors Association of Australia said few producers are paying the award rate for shearing sheep.

Shearing Contractors of Australia chief executive Jason Letchford said he had heard reports of up to $5.50 a sheep being paid as cash to lure shearers to properties.

This was making it difficult for contractors to keep shearers on their teams, with some simply deciding it was “too hard”.

“I had a smaller contractor ring me recently and he had six shearers on his books, and then three and then zero as they were attracted by more money to go to other sheds,” Mr Letchford said.

“He wanted to know what he could do but he also said he’d been offered a job in the mines paying $160,000 – the shortages are driving workers out of the industry.”

Mr Letchford said the Pacific Australia Labour Mobility scheme had been slow to deliver and while the industry had hoped to get workers this spring, it would be next spring before there could be shearers available though the scheme.

“With the Australia-India Economic Cooperation and Trade Agreement beginning in India at the end of the year, we thought it was worth the conversation with India to see if we can tap into that country’s workforce,” Mr Letchford said.

“India has the third-largest sheep population in the world and while it’s only a discussion at the moment, we hope that a delegation next March might find it is something worth pursuing.”

Mr Letchford said while numbers were always tight, the exit of New Zealand shearers en masse in early December had tightened supply further.

“The NZ shearers have their own programs to go back to in their country and tend to leave at the start of December, and they couldn’t even do what they usually do in Australia because of rain delays,” he said.

He said one solution could be to try to even our the workload so that not everyone was trying to get their sheep shorn in autumn and spring.

“We encourage producers to look at their programs if they can’t source shearers, and try to see if they can shear at another time,” Mr Letchford said.

“It may come that they can get their sheep shorn cheaper at a quiet time – market forces will probably see seasonal pricing where you might have to pay $5-$6 to jump the queue in spring, but would pay $3.80-$4 in quieter times.”

Australian Wool Innovation chairman Jock Laurie said the number of wet days this spring, combined with an increasing flock, had created delays for some producers.

And while AWI had committed more than $10 million to training more shearers, Mr Laurie said the competitive job market meant it was hard for all industries to get staff.

There was also competition for land use from other agricultural enterprises and the cost and difficulty in getting shearers could turn some away from running sheep.

“There is an award but there seems to be no set rate at the moment,” Mr Laurie said.

“We are seeing the end result of the drought and the falling sheep flock and the impact that had on the number of shearers.

“For six or eight years, the sheep industry did not know it had a problem (of falling shearer numbers) and we are paying the price for that.”