Early Merino ram sales in Victoria, including at Bendigo’s Australian Sheep and Wool Show (ASWS) and Hamilton’s Sheepvention, augur well for those to follow.
Elders Stud Stock’s Ross Milne said at these multivendor events and the handful of Victorian studs’ on-property ram sales that have been held since them, a “significant upward trend” had been noticed, compared to previous years’ results.
The ASWS ram sale saw 12 more rams sold compared to last year, the top price was more than double, and four rams made $30,000 or more, which helped push the average price up by $2000.
More commercial flock rams were sold at Sheepvention, where a record average price was again set.
Other multivendor Merino ram sales, including Ballarat and the North East group’s sale at Benalla, also recorded terrific results.
The McGauchie family’s Terrick West Poll Merino stud at Prairie is always one of the earlier Victorian studs to host their on-property sale.
On August 11, they offered 72 rams with all but one selling to an average of $2581 clearly eclipsing last year’s average of $1962.
Mr Milne expects this strong trend to continue, with the strong wool market a driving factor.
“We’re seeing market indicators for most microns at historic highs,” he said, adding that confidence had been building in the market in the past 12 months.
He anticipates it will encourage commercial producers to invest a bit more in the rams, especially as in areas where the season has been reasonable, many were trying to build up their Merino flocks again.
“In the past five to 10 years, we’ve seen people buying more terminal type sires, but there seems to have been a swing back to more pure Merino ewe base(d flocks).”
Potential buyers will consider the drivers of profitability – fertility, production, wool cut and wool quality. And while they will be able to select from a myriad of high quality Merino and Poll Merino rams, one thing producers cannot chose is the weather.
Rainfall totals in the past month have been patchy and some areas of Gippsland are very dry, which could impact some ram sales.
Landmark Stud Stock’s Andrew Sloan said, as well as strong prices, he expects clearance rates to be high at the Spring Merino ram sales.
“Certainly, people are encouraged by the wool market,” Mr Sloan said.
“While people left Merinos because wool was in the doldrums, that’s changed and people are now making more from their wool.”
He said in pastoral areas many Merinos had been sold and Dorpers had become more common. He does not expect it to change quickly.
“But if there’s a shortage of something, it sends prices up and people will reinvest but that will possibly take a few years, and will most likely be seen in the marginal areas.”
He said there had been a fair amount of Merino flock rebuilding started in the past few years.
Buoyed by good returns from lambs and wool, Mr Sloan hopes that producers will take the opportunity to reinvest in genetics.
