China trip a wool eye-opener

Earlier this year, several decades after his father John encouraged him to take on a career in information technology, he returned to look after the family property.

Tom, who was part of the 2014 Elders China Wool Tour earlier this year, bought out his father's share in the 607-hectare farm in 2000. But it took 14 years before he was able to return and live on the property full-time.

"One of the issues I grappled with was that I couldn't make a profit living from the farm initially," Tom said.

"I bought the farm on January 4, 2000, but I was on the back foot for many years because of eight to 10 years of fairly consistent drought.

"I also was trying to develop infrastructure including haysheds, dams, fencing and pastoral improvement.

"I could've decided not to buy the farm but it was in my blood - what I know and love."

From 2010 to 2011, he expanded the property, buying an extra 32ha, and then another 868ha property.

"My family farm was never sustainable on its own, which is why I stayed working in Sydney for so long," he said.

"I had to increase the critical mass two-fold.

"I also needed to create enough income streams so I could follow my life dream and come back to the farm."

The first year was tough but his family helped out. Now, three years down the track, he has positive cashflow and a "full pipeline" of cattle.

Tom aims to finish 600 to 700 head of cattle a year, with a financial model that works on three points - selling weaners at 200 kilograms, to feedlots at 320-420kg or to abattoirs at 525-540kg.

Time of sale depends on cashflow requirements, and seasonal conditions.

To improve this cattle herd, Tom has undergone training to ultrasound his 400 Angus cows, and regularly uses AI.

Kenny's Creek Angus bulls and semen are predominately used in the herd to improve quality.

"We can AI 400 cows in three shifts over a long weekend," Tom said.

"I work with some very good AI techs.

"Initially I had a grand plan to run 3000 sheep. But we ran with cattle for strategic reasons, as we could do higher margins at lower numbers in comparison to sheep.

"They suited me as I was initially only able to come up on weekends."

But a year ago, local Elders agent Craig Pearsal triggered Tom's interest in sheep again.

"We talked it through as I had gotten bored with sheep but Craig sparked my interest again," he said.

"I was running 1200 sheep altogether, including 300 wethers, but we've increased to 1600."

Of the flock, 80 per cent are Poll Merino based, with an average micron of 18.5, and from Privet, Glenleigh and Grassy Creek bloodlines.

The remainder are first-cross ewes mated to Poll Dorsets, producing about 300 lambs a year.

"My current aim is to improve yields in lambing and wool," Tom said.

"I have kept wethers lately as mutton prices have been relatively low, and they're my wool cutters.

"I had room to run them and they cut 5.5-6kg a head of 18.5M wool, so it's been worthwhile.

"I look at the business model I have and adapt as needed."

Tom said diversification helped and, as none of his country could be cropped, he ran a variety of enterprises including cattle, wool and prime lambs.

Miranda Kenny travelled to China courtesy of the 2014 Elders China Wool Tour.

* Full report in Stock Journal, May 29, 2014 issue.