What an incredible start to our growing season in the Eastern states.
Autumn lambing programs are widely reported throughout our markets to be exceptional. Ewe and lamb survival rates are extraordinary with improved paddock pasture ample to maintain the breeding systems.
Mild weather patterns continue well into May and ongoing opening rains have led to near perfect livestock lambing conditions. Multiple births are thriving and that includes our beloved Merino lamb breeders.
Our industry is on the verge of significant growth for wool and lamb production. What does that mean for the second half of 2022?
Every sector needs to plan for increased production. This means more sheep to shear and more lambs and sheep for meat markets and processors. We have not experienced such widespread growth for a generation and we need to anticipate pressure on all parts of our pipelines. After years of below average rainfall Australian sheep numbers were at their lowest for more than 100 years. The country's flock rebuild has begun in all states and with improvements in breeding, feeding, handling and water access points our farms are well positioned to cater for the growth but can post-farm gate supply lines manage the growth?
Our wool and meat markets are well established so demand is promising. Ongoing international logistics issues and worker shortages remain our Achilles' heel. We need to lobby both sides of politics to support primaries industries' growing demand for workers. Commonly we hear wool growers facing difficulties in sourcing help at shearing, cropping or harvest. The solution needs to be addressed so we can all deliver on the potential the season provides.
Post-Easter wool markets are better than expected as the Australian dollar weakened dramatically against the US dollar, now trading from .6850 to .6950. This is fueling rises in Australian prices to growers as weekly volumes offered reduce in May and June. While all wool categories are all on the rise, the 18 micron and finer continue to attract global wool demand. Fine wool prices have traded without major volatility for an unusually long period. History has taught us to anticipate that fine wool prices only have monthly high trading ranges. Potentially this new cycle may continue to stabilise fine wool prices beyond an entire season with ongoing demand and limited supply providing a solid platform.
The Australian Sheep & Wool Show is planned for July 15 to 17 in Bendigo, following two years' absence, so we are all excited. It is our chance to educate, inform and promote our sustainable industry to the world.
