Camera IconDarkan sheep farmer and Icon Agriculture consultant Andrew Ritchie. Credit: Rueben Hale/Countryman

Sheep producers are stripping off their woollens and looking to less tumultuous farming operations as the issues plaguing the industry heighten anxiety and creates more uncertainty for the future.

ASHEEP chair David Vandenberghe, of Scaddan, said the Federal Government’s proposed live export ban, coupled with low prices for wool and sheep meat were hitting farmers’ hip pockets.

However, he said the key issue forcing some producers to rethink their operations was shearing.

“Shearers can be hard to get and when you do get them they are three to four months late and that creates animal welfare issues,” Mr Vandenberghe said.

“It’s enough for some to say, ‘I’ve had enough, I’m out’.”

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While he wouldn’t elaborate on the number, he said a “handful” of ASHEEP members were considering exiting the sheep industry because of it.

Icon Agriculture consultant Andrew Ritchie said with low prices, live export uncertainty and shearing issues there was a lot of uncertainty and anxiety within the WA sheep and wool production industry.

“Prices are low: wool prices at about the 50 per cent percentile, and even lower when you adjust for currency and inflation, combined with sheep prices about $45 per head head lower than last year, or 30 per cent, then little wonder there is concern,” Mr Ritchie said.

“If you add the shearing issues and livestock uncertainty you can see why some farmers are considering the enterprise mix that works best for their farm, and the role of sheep within that mix.

“We think we could see a 15 per cent decline in the flock in the near term unless the live sheep issue is resolved.”

With several producers already deciding to exit the industry that means more sheep needing to be processed in a shorter time frame.

“I think a sudden influx of sheep to be processed would clearly impact a sheep processing sector that is already not coping with supply,” Mr Ritchie said.

“After that I would expect processing to be in a better position and I would image prices would reflect that.

“On the wool side, I don’t think much impact overall, given they would be shorn anyway and contribute to normal wool supply, although longer term it does have an impact on the wool harvesting community.”

Mr Vandenberghe said, despite all the industry issues, the worrying thing at the moment was government interference in the market.

Camera IconASHEEP chair David Vandenberghe. Credit: Bob Garnant/Countryman

“The government can so easily interfere and disrupt the industry and not care about it,” Mr Vandenberghe said.

“The COVID lockdowns have come back to bite us.

“You can’t shut up the work force, which eventually shuts down processing, without consequences.”

He said the local Esperance abattoir was “cranked up” after being closed for three years due to the impact of government interference and with prices for wool and meat at the level they are live export was needed to provide an alternative market for producers.

“The mutton price is 50 per cent down on last year and there’s a battle to get animals in for processing,” he said.

“Where wool is at is because people around the world are not spending money, and the cost of electricity to process wool is prohibitive.”

Mr Vandenberghe said there had been “very poor consultation” on the live export ban — “they announce it and then consult”.

“It’s about the principle of interfering in markets, especially when the industry has complied with the exporter supply chain assurance system requirements,” he said.

Mr Vandenberghe said for the industry to bounce back it needs some positive direction from Government, especially to do with labour shortages and a lack of housing availability, and “no hiccups” with meat processing.

“The sad thing is the world is crying out for red meat but we can’t get it processed,” he said.

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