Profitable Sheep Production

Why not double your return with Dohne's?
Cameron McMaster

Even under current terms of trade woolled sheep generate higher gross margins than any alternative semi-intensive to extensive livestock enterprise. Even so, most sheep flocks under-perform in terms of gross margin per head or per hectare. Attention to just a few basic principles of breeding, management and flock structure can result in a dramatic improvement in the profitability of woolled sheep flocks and can easily lead to the doubling of the profitability of your flock. Weight of meat produced and marketed is by far the most important factor that influences the profitability of woolled sheep flocks - even high quality merino flocks. This is an indisputable fact confirmed in every economic analysis that has been done to date. If less than 70% of your total flock income derives from meat, your flock is under-performing and you have much room for improvement!

To achieve maximum profitability you should aim to increase the meat production to a level where it generates at least 70% of gross flock income. You must do this without sacrificing any wool income.
How can this be done?

There are three fundamental factors that are necessary to achieve this:

1. High reproductive performance

2. Fast lamb growth rates

3. Optimum flock structure (Ewes in full production must constitute at least 60% of your flock) 

The latter two factors are intimately related. The sooner lambs are marketed, the higher the gross margin of the enterprise will be and the easier it will be to maintain a full complement of ewes (at least 60% of your total flock). The sooner lambs can be marketed at top grades, the more resources you will have available for reproduction and the more lambs you will produce - a snowball effect to higher profitability.

The type of sheep you run will influence the degree of success you achieve. Recent research has confirmed that a sheep type with an optimum relationship between wool and meat production in a specific environment is required. This relationship is defined as Wool Production Potential, usually measured at 12 months of age when clean fleece is expressed as a percentage of body weight (WPP %). Because there is an inverse relationship between WPP% and reproduction and lamb growth rate, striking the right balance in your flock is vital. Experience has shown that woolled sheep types with a WPP% of between 5% and 7% are ideal and have the added advantage of being plain-bodied, hardy, fit and easy care - traits that help to reduce production costs.

While wool may contribute only 30% or less in this equation, its contribution adds long-term stability and higher future cash flow potential, especially since selection for finer, high quality wool can increase the value of this component. Experience with this formula has demonstrated that while meat production increases with more efficient sheep, the wool production of the enterprise can be fully maintained and, because of more lambs/hogget's to shear before marketing, it can often be increased. 

In summary - to double your profits:

1.  Choose rams that will achieve high reproduction and lamb growth rates with the optimum balance  between meat and high quality fine wool production.                                                                                    

2.  Select within your ewe flock for lambing performance - fertility and lamb growth rate - these should be your sole objectives.

3.  Maintain an optimum flock structure - 60% at least to be ewes in full production.

4.  To facilitate this - market lambs when they reach 40 kg live weight (4-8 months old).