THE sheep and wool industries are still profitable. That was the take home message gleaned from the recent Merino 2020 seminar held in Tammin last week. The seminars were part of a series being held across the state.
Around 40 producers from the Tammin area and surrounding districts were on hand to hear the message from Katanning Agrarian Management consultant Ashley Herbert and JRL Hall and Co director, James Hall.
The program was developed by Icon Agriculture and jointly funded by Australian Wool Innovation and Meat and Livestock Australia and organised in conjunction with the Stud Merino Breeders Association of WA. The dog aimed to show the importance of sheep to a balanced farm businesses.
Mr Herbert and Mr Hall had on hand, up-to-date figures explaining how sheep and wool fared against cropping enterprises, showing sheep, on average gained higher gross margins per hectare than lupins.
Both agreed every farming system needed balance to achieve sustained profits.
Mr Herbert wanted to dispel any myths that suggested the sheep and wool industry was dead.
Mr Herbert told producers that running sheep was still a very profitable enterprise.
"As a consultant my aim is about enhancing farm profit," Mr Herbert said.
"I see sheep as one option for making money and this can be done with a balance between sheep and cropping for sustained profits over time."
He said he believed sheep and wool were still a worthwhile enterprise.
"Wool and sheep are still a relevant enterprise," he said.
"Sheep are still current and still a viable money making venture.
"Wheat is a commodity, wool is a commodity and sheepmeat is a commodity.
"Farmers are price takers and the market tells you what your product is worth.
"Once you accept this there are some very simple rules you must follow, you have to be volume producers and produce as much as you can at the lowest costs possible.