Sheep producers offload in northern ag region as seasonal conditions bite

The worst seasonal conditions in 10 years are impacting the northern agricultural region, forcing sheep producers to destock and run their sheep over crops that are unlikely to be harvested.

The dry seasonal conditions, compounded by the Federal Government’s decision to phase out the live sheep trade by sea and low meat prices, have seen sheep numbers continue to decline north and east of Geraldton, reducing the number of stud Merino breeders in the region to just three.

Elders livestock agent Tom Page said the issues had caused “a lack of confidence” in the industry which has been taking a toll on farmers.

Mr Page said in the next six weeks he’d be trading 10,000 head of sheep from clients into available processing space or the saleyards as they sought to “trim up their flocks” in order to make it through the expected drier summer months ahead.

“I’ve been in the area for 10 years and it’s the worst I’ve seen it in that time,” Mr Page said.

“I know it is not uncommon, but it’s the worst we have had in a while and past Yuna, Mullewa and Perenjori it’ll be a below-average harvest.

“It does put the pressure on producers.”

Mr Page said one of the biggest issues because of the seasonal conditions was that sheep being sold off were not in the best condition and were fetching extremely low prices at the Muchea saleyards, of between $5-$30 per head.

“Some of the stock are not worth the freight bill,” he said.

“Some people will hold on to them and hope for a turnaround.”

He said culling had been occurring in small numbers where farmers had no other options, but come December and January “there will be some tough decisions to be made” among the wider northern industry.

While it was dire in some parts, Mr Page said those who had invested in their flocks were in a much better position and were attracting better prices at sales.

“People are downsizing to ride out the next 12 months but along the coastal areas it’s not so bad,” Mr Page said.

“High quality, well-bred sheep, are something they should be proud of — especially when the system is against them.

“It’s a credit to committed growers still fronting up with high quality rams and lambs.”

Northampton mixed farmer and Walkindyer Poll Merino Stud breeder Nathan Teakle said while he still runs 4500 ewes, with 4500 lambs, due to sandplain country that was not suitable for cropping, other farmers in the region had switched to total cropping to avoid the many issues plaguing the sheep industry.

“North of Northampton, people have been considering exiting the industry,” Mr Teakle said.

“The live export issues, on top of seasonal conditions (a late start to the season and not enough rain for adequate pasture growth), is pushing people towards total cropping.”

Truckloads of sheep have been reportedly exiting the region, heading straight to processors and live exporters.

Mr Teakle said his business was 50/50 wheat and sheep, due to farming on the coastal sandplain, which lent itself to running sheep on “blue lupins and pastures”.

The Teakles have been running sheep for three generations and, while things may be disheartening in the industry, there’s no plans to change anytime soon.

“We’ve always had Poll Merino sheep,” he said.

Walkindyer Poll Merino Stud is one of three remaining active studs left in the Northern Stud Breeders Association, in the Northampton and Chapman Valley areas, which used to boast up to eight.

The other two studs are Mulga Springs and Lyndale.

Mulga Springs director Chris Hasleby said the numbers had declined because it was hard work producing quality stud animals, especially with tough seasons and not much interest from buyers.

He said some of the studs had sold out and had gone to complete cropping programs.

Northern stud breeders were expecting “a tough ram selling season”, which had already seen a drop of $400-$600 per head on last year’s prices, to average about $650-$850/head, according to Mr Page.

Mr Teakle said his Merino wethers and lambs mainly went direct to Fletchers International at Narrikup.