THE Western Australian sheep industry appears to be going through some interesting structural and marketing trends.
Firstly is the decline in live shipping numbers brought about primarily by a shortage of shipping sheep, basically young Merino wethers.
Secondly was the main reason for this shortage, the increased export of processed lamb.
Thirdly was the export destination of processed lamb to growing markets in Europe, Asia and America, and a small increase to the Middle East.
All these positive changes auger well for the sheep industry in WA going forward.
One noteworthy shift with these changes is that the live export sheep trade is in decline due to market forces, and are industry initiated, based mainly on economic sheep returns and flock management changes.
Of significance they are not changes brought about by determinedly arrogant Labor governments, out of touch, belligerent, and inept ministers, or pressure from the two anti-farming bodies that are hell-bent on destroying all forms of animal farming.
Of further interest is the way the WA sheep flock and the sheep meat industry are trending.
The WA sheep numbers are static and this is unlikely to change due to many reasons including environment, Merino tradition, farming practice, investment in cropping infrastructure, younger farmers, corporate farming, an unpredictable and volatile single wool market, and real comparative economics of grain production and sheep breed net profit/ha.
Merino traditionalists may well argue the merits of their breed, which are undeniably good and pertinent in WA farming conditions, but in many management systems together with today's gainful meat returns, some shedding breeds are simply economically at par or better in terms of net profit/ha.
Sheep management improvement over the past 30 years has resulted in much higher lambing rates allowing the use of terminal sires to produce cross-bred prime lambs.
In addition there are probably more Merino wether lambs being slaughtered.
Another factor is the decreasing percentage of Merino sheep in the WA flock and the increase of meat type strains, greater use of terminal sires, and specific meat breeds including shedding breeds.
Thus less Merino wethers for live export.
MORE SHEEP AND WOOL NEWS
In effect, given today's sheep meat prices, market stability and diversity, growing and potential markets for processed sheep meat, the live sheep trade may well wither on its own vine and within a few years cease to exist.
Which in many ways will be sad, because it did act as a buffer against former meat industry militant unionist actions aimed at disrupting industry, and it did provide sheep for a specific live hot-meat market.
It still is another market option for producers, it was the backbone of the Merino industry after wool prices collapsed around 1990, and live shippers provide both quantity and quality to the wool industry.
So let's hope live shipping remains a viable option for producers, even at a reduced capacity.
What is pleasing is that the WA sheep industry in 2022 is alive and well, with a competitive trade market and array of exciting export markets of live sheep, processed meat and wool.
Go you good thing - go.
