Science of Merino: Woodyarrup Merino and Poll Merino stud equates to wool and lamb profitability

Optimising wool profits always makes good financial sense, but this is particularly true in the current environment, according to industry expert Paul Swan. He said steadily rising shearing and crutching costs, along with turbulent sheep and lamb prices, variable seasonal conditions and other significant industry challenges, mean growers must get the best possible return from every sheep and bale. Operating as a technical consultant to Broomehill-based Woodyarrup Merino and Poll Merino stud, Dr Swan said given the nature of the West Australian sheepmeat market, wool income was a foundation of profitability and sustainability. “Most of Woodyarrup’s WA clients run self-replacing Merino flocks, including adult ewes and wethers, and ewes cutting 18-20 micron fleeces,” he said. “This means 50 per cent or more of the sheep shorn each year are typically adults, and given lamb fleece weights are lighter, ewes and wethers are generating over 70 per cent of the filled wool bales. “With this in mind, and particularly in this market, in addition to producing ewes that rear fast-growing and healthy lambs, it makes good business sense to also focus on genetics that support heavier cutting sheep with finer wool.” Dr Swan said the cost of harvesting and marketing wool consumed the equivalent of 1kg to 2kg of greasy wool per ewe, depending on yield and how many times ewes needed to be shorn annually. “At Woodyarrup, we shear our sheep once each year and aim for our ewes to pay for shearing with a kilogram of wool and generate at least five additional kilograms for the business — and this is very achievable,” he said. “Even after one of the driest years on record last year, our 2022 drop maiden ewes achieved an average fleece weight growth rate of approximately 20g a day. “This equates to 7.3kg of greasy wool annually, or around 1kg every 51 days.” At an average of 18 to 18.5 micron, wool from Woodyarrup ewes was worth about 1500 cents a kilogram clean, which at a 60 per cent all-in yield, equated to $9/kg greasy. “So, at around $9-$10 a head for shearing and crutching, we cover those costs in about seven weeks, and the other 45 weeks goes to our bottom line,” Dr Swan said. He said at shearing in June, one of the maidens cut 10.1kg of 17.6 micron wool in the 322 days, which worked out to an average of 31.5g a day. Another heavy cutting ewe produced 9.05kg (28.1g/day) of 14.8 micron wool, while a third cut 9kg (28g/day) of 16.9 micron wool. “These results demonstrate what is possible when selecting the right genetic package for your enterprise,” Dr Swan said. “Striking the perfect balance is key to achieving producing ewes that mother a good number of fast growing and healthy lambs, which also cut heavier fleeces of fine wool. “And this is an area in which Woodyarrup excels.” Producers needing assistance in developing a strategy or advice on determining the best genetic package for their flock, can contact Woodyarrup stud principal Craig Dewar on 0429 100 239 to arrange a free consultation with Dr Paul Swan.