A good season and strong prices at multi-vendor ram sales and wool sales bode well for the upcoming Victorian Merino studs’ sales.
That’s according to Victoria Stud Merino Sheep Breeders Association president Michael Collins, who said the association was optimistic that this year’s ram sales would be “considerably” stronger than last year, thanks to an improved season, with widespread average rainfall totals, and improved market indicators.
“A fair proportion of the wool clip is selling sell this year,” Mr Collin, who has the Mt Bute stud, Linton.
“From 18 microns and broader, the wool industry is going very well.”
Australian Wool Innovation’s (AWI) monthly market update for July reported wool prices significantly improved since July 2014: the Eastern Market Indicator (EMI) in Australian dollar terms has progressed from 1022 to 1285 cents by end of June 2016. AWI calculated this is a 263c gain in just two seasons and represents a 20.5 per cent increase in the real income returns to growers.
The Meat and Livestock Australia’s (MLA) Australian sheep industry projections 2016 July update reported the national trade lamb indicator reached near record highs in June. The momentum carried through to July and at the mid-point of the month, the trade lamb indicator was up 9pc year-on-year and 13pc compared to 2014, at 627c a kilogram carcase weight.
Mr Collins said the multi-vendor ram sales in Victoria in recent months had been very strong. For example, ram sale at Sheepvention, Hamilton, achieved a record average of $2785.
“We expect the [on-property] ram sales to also be very strong,” he said.
“There is certainly more optimism than this time last year.”
One factor that could affect clearance rates at on-property Merino ram sales is the number of Merino ewes people have to join.
According to MLA, survey results indicate Victoria was the only state that did not record an increase in breeding ewes on hand compared to the same period last year.
Mr Collins said the Merino industry was planning a marketing compaign to encourage people to breed more Merino ewes. He said the campaign would be launched at The World Merino Insight in Adelaide from September 4 to 9.
“We want to highlight all the reasons people should breed Merino ewes; they are multi-purpose animals that produce a very good fleece and are the backbone of the prime lamb industry,” Mr Collins said.
“We want to show that Merinos can be part of profitable enterprises.”