Rhodes Pastoral makes more than $30 per head profit now it has transitioned from live exports to feedlotting

Rhodes Pastoral’s general manager says the decision to transition from live sheep exports to feedlotting has resulted in more than a $30 profit per head six years on. The leading agricultural operator made the decision to stop exporting 4,000 weaners annually to Middle Eastern countries when the Federal Government’s live sheep export ban by May 2028 “started to become a real possibility” in 2019. Michael Wright said the mixed enterprise owned by Perth-based family company, D.F.D Rhodes, wanted to “stay in the game” and felt the only way to do that was to finish its sheep. He said the decision was contingent on the company’s ability to update its “antiquated” feedlotting process, which was already in place to finish its crossbreds. It heralded the start of Rhodes’ significant financial investment during the the next two years. The business invested $240,000 in a mixer and $100,000 in shade sails among other systems to ensure minimal-disease, high-quality water and optimal animal welfare that would, in turn, result in profits gained. Mr Wright conceded the upfront costs were a “big investment” but said he felt staying in sheep for the long run required nothing less than a full commitment to the process. Within two years, by the end of 2020, Rhodes had fully transitioned out of live exports. Currently 10 per cent of its wethers are airfreighted while the rest, more than 6500 Merino lambs and more than 4000 crossbred — the roughly 50 per cent that aren’t sold as suckers — are finished in their feedlots. “It’s a bit more work (than live exports) but the reality is, I think we’re producing a really good product,” he said. D.F.D Rhodes was established in 1950 by Donovan Rhodes and was responsible for the earthworks of several major state projects including the Perth Airport runways, Narrows Bridge and the Lake Argyle diversion dam. In March, posted a $96 million profit, majority of which was as a result of large iron ore royalty payments. The Rhodes family’s interest in agriculture started in the 1960s when Mr Rhodes purchased the family’s first piece of land at Boyup Brook. Rhodes Pastoral now produces 12,000 rolls of hay and silage, with 800 Angus breeders and 24,000 Merino sheep on 17,000 hectares within the Boyup Brook, Arthur River and Kojonup shires. Mr Wright said Rhodes’ Merinos averaged $192 out of its finishing paddocks at an average weight of nearly 24kgs in 2021-22, which also looked like $120,000 per B-train when 600 wethers left the farm — “a pretty good return”. When asked by the Countryman why he was only now sharing the business’ success, Mr Wright said he had wanted to be respectful to the Keep the Sheep campaign. Despite this, Mr Wright said waiting for a final decision on the matter could have led to a missed opportunity for many producers. He said while it wasn’t too late for other producers to make the transition now, it would come with significant cost which could rule out the possibly for smaller operations. “We’ve lost the value in money in the last six or seven years. . . money doesn’t represent what it used to when we started six years ago,” he said. Mr Wright said his main piece of advice for those thinking of getting into feedlotting is: “do it once and do it properly”.