Lamb opportunities in the west
Figures showing lamb production can be profitable in the high rainfall zone (HRZ) are being used to drive a campaign to increase sheep production.
The area has traditionally been only a small contributor to Western Australia's sheep production but with a climate similar to major prime lamb production regions in South Australia, Victoria and NSW, WA's HRZ has been earmarked for its production potential by the Department of Agriculture and Food WA (DAFWA).
Murdoch University (MU)Associate Professor Dr Andrew Thompson said modelling for the MLA-supported Scoping Study for the WA High Rainfall Zone Lamb Initiative had found profit from a lamb enterprise in the south west HRZ could be up to $246/ha.
The analysis incorporates information from WA's Red Sky beef benchmarking project and will include potential returns from beef enterprises versus early or late lamb systems turning off finished lambs.
Andrew said preliminary Red Sky benchmarking data showed sheep enterprises created about $220/ha more profit than beef on properties running sheep and cattle in this region.
A self-replacing sheep flock system, based on a maternal composite genotype, was found to have similar profitability to buying in a dual purpose merino ewe and mating to a terminal sire to produce a first-cross finished lamb.
Pluses and minuses
Research across the HRZ found the main barriers to running sheep were unsuitable infrastructure, perceived high labour requirements relative to returns and concerns sheep that were too susceptible to worms, footrot, fleece rot and lice.
DAFWA Livestock Industries Research Officer Kimbal Curtis said many beef producers indicated they ran cattle because of ease of management and better suitability to infrastructure and the region's long wet growing season.
"However, they also expressed frustration with poor beef prices, lack of buyer competition for cattle and high costs of production," he said.
Kimbal said producers who did run sheep in the region said the main benefit was diversified income from lambs and wool.
"They also said sheep were a better grazing tool for weed control and it was easier to match sheep nutritional requirements to pasture supply than it was for cattle," he said.
"Those farmers who were considering lamb production were attracted by the higher profitability of the sheep enterprise."
Harnessing the potential
To assist the development of a prime lamb industry in the south west HRZ, producers said they wanted confidence of sustained market opportunities and case studies of successful local sheep enterprises.
Kimbal said there was potential to have 510,000 more ewes producing an extra 430,000 lambs from new sheep entrants to this region and an extra 210,000 lambs from improved reproductive performance of established flocks.
"This will help to boost WA sheep numbers to some degree and contribute to more efficient and sustainable sheep processing and export sectors in this state," he said.
The next steps of the project are to finalise the profitability analysis and develop case studies to highlight successful sheep systems already operating in the high rainfall zone.
For WA's high rainfall zone (HRZ) producers wanting to focus on lamb production, the critical control factors that will have the biggest impact on whole farm profitability are:
High pasture utilisation ($40–$80/ha for a 10% increase in pasture utilised)Good lamb marketing program ($50/ha for a 10% increase in value of lambs)High reproductive rates ($42/ha for a 10% increase in lambs produced)High winter pasture growth rates ($40/ha for a 10% increase in winter pasture growth)Mating ewe lambs ($37/ha from mating ewe lambs)
Tools to help producers run more sheep
Sheep - the simple guide to making more money with less work
Source: Meat & Livestock Australia, 1 February 2013
