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The Top Sire Merino Newsletter of the NSW Stud Merino Breeders’ Association

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The Top Sire Merino Newsletter of the NSW Stud Merino Breeders’ Association merinoThe Top Sire merino Newsletter of The NSW Stud Merino Breeders’ Association January - June 2004 Merino Enterprise Profits Proudly sponsored by Key findings of a recent report commissioned by Meat & Livestock Australia are renewing optimism among Australia's sheep and wool producers, according to newly elected president of the NSW Stud Merino Breeders' Association (SMBA), Kim Henderson. Mr Henderson said that the Economic Analysis of Sheep Production Systems by consultants, Hassall and Associates, has reinforced the belief he shares with members of his association in the economic viability of the Modern Merino over other farming enterprises. These findings complement those of Holmes Sackett & Associates released last year as Economic and Situation Analysis of the Australian Sheep Industry, a report jointly commissioned by MLA and AWI. The report concluded that "the profitability of sheep flocks, be they predominantly for meat, wool or a combination of both, is likely to be very competitive to other broadacre enterprises coming out of the drought." Mr Henderson's remarks coincided with the launch during May of "Merino Milestones" which, at fortnightly intervals in The Land, aims to further highlight the gross margin advantages of Modern Merino enterprises. "I believe that the future for Merino sheep and wool in all categories is very bright. Modern Merinos bred by commercially focused, progressive sheep breeders are meeting the exacting requirements of fertility, wool quality and carcass characteristics." "Genetic gain has been very rapid since the demise of the Reserve Price Scheme. Experienced observers described the display of Merino sheep and fleeces as 'the best-ever' at this year's Royal Easter Show." Mr Henderson concluded, "In the medium and longer term, I believe that producers who have stuck with quality woolled Merinos will be in the box seat. I suspect that the introduction of other breeds may return short-term gain for long-term pain." Kim Henderson takes SMBA Reins New president of the and fellow producers through the THE TOP SIRE SMBA, Kim Henderson, OJD debacle of the last six to The Newsletter of the NSW joined the SMBA Council in seven years. Stud Merino Breeders' 1997. Since then he has Association Ltd "We will regain the initiative in served on and chaired A.B.N. 95 002 659 896 vigorously promoting the Modern A.C.N. 002 659 896 several association sub- Merino. We will forge closer links The Australian Merino Centre committees and is well with commercial producers and Locked Bag 4317 known as an association Sydney Olympic Park remove the 'mystique' that may spokesperson on OJD NSW 2127 still surround the association. Phone: (02) 9763 2744 issues. Fax: (02) 9763 1878 "The association's voice will grow Following his election at E-mail: [email protected] much stronger and we must be the association's April more politically aware. Closer links with, for AGM, Mr Henderson said, "As new chairman I Editor example, AWI, NSW Farmers and Government feel honoured but also humbled to join Carol-Ann Malouf are paramount in developing new vibrancy legendary industry names such as Kater, Public Relations Officer and enthusiasm to attract young people to NSW Stud Merino Breeders' Litchfield, Merriman and Falkiner. the industry at all levels; to assist Australians Association Ltd PO Box 320 The Henderson family's Grogansworth Merino to again realise and understand the critical Condobolin NSW 2877 Stud was founded in 1985. Presently they importance of the industry to the national Phone: (02) 6895 2274 have 550 stud ewes and run a self-replacing economy; and to improve and increase the Fax: (02) 6895 2339 flock of 10,000 sheep on 1370 ha. production of wool in an environmentally E-mail: [email protected] responsible manner - a natural fibre for the On the association's future, Mr Henderson 21st century.” Printed by said, "We have been side-tracked from the big Dobija Design & Publishing picture by correctly supporting our members Kim Henderson can be contacted by phone or Phone: (02) 6964 5093 fax on (02) 6227 6085 merino www.merinonsw.com.au 1 Newsletter of The NSW Stud Merino Breeders’ Association Dark and/or Medullated Fibre Risk (DMFR) Protecting Australia's Merino industry All Australian woolgrowers should be aware that the International Wool Textile Organisation (IWTO) has recently approved a recommendation that a Dark and/or Medullated Fibre Risk (DMFR) scheme for Australian Merino wool be recognised in its Core Test Regulations from 1 July 2004. This voluntary scheme has been instigated to protect the reputation of Australia's premium "white" Merino wool industry This allows inclusion of the Risk Level on AWTA Ltd Core Test Certificates and AWEX has been approached to facilitate inclusion in sale catalogues. The DMFR scheme will provide: * Merino woolgrowers with increased ability to inform processors that their Australian Merino wool is not contaminated by dark and medullated fibres, and * Customers with increased confidence that your Australian Merino wool will meet their requirements. Commenting on the DMFR Test Mr Jackson said, "The DMFR Test Fee Slashed significant reduction of the fee for this service is AWTA Ltd has announced that the presale fee for the opportune because it will be implemented at the same DMFT will be slashed from $150 (+ GST) to $39.70 (+ time as the Dark Fibre Risk Scheme." GST). There will also be no increase in general raw wool testing fees in 2004/05. Mr Jackson said, "A full suite of activities will now be available to protect the reputation of Australia's 'white Announcing these decisions, managing director, Merino wool'. Michael Jackson said, "This is good news for the Australian wool industry. At a time when some recovery "The DMFR Scheme will enable growers to declare that in production seems to be occurring, a zero general fee they have followed best practice in their animal increase will assist those wool growers who are husbandry and clip preparation." rebuilding their wool growing enterprises." Welcome... The NSW Stud Directory to the following NSW studs, 2004 registered to date in 2004: • OAKEY MOUNT Flock 5000 The NSW Stud Directory MM&HMSeaman, 1932 The Bridle Track, 2004 (pictured), Duramana released earlier this * KAMBALA Flock 5001 year, is a 36-page, PR&REBlomfield,"Kambala",Walcha conveniently sized booklet which contains * MT BUFFALO Flock 5007 contact details for the CH&LMBanks, "Mt Buffalo", Wargeila Road, 510 registered NSW Yass Merino studs. * KIROB Flock 5006 KD&RACartwright,"Thalaba Downs", Laggan Copies can be obtained from NSW SMBA * ROGARA POLL Poll Flock 1317 executive director, Carol "Rogara", Goulburn King on * MANDERVILLE POLL Poll Flock 1323 [email protected] M J & C A Coddington, "Glenwood", Dubbo or ph (02) 9763 2744 2 Keep an eye out for www.merinonsw.com.au merino Newsletter of The NSW Studmer Merino Breeders’ Association no Key influences on world wool market by Stephanie Lowe Analyst, Food and Agribusiness Research, Rabobank Geoff Rayner, Pomanara, Current demand and supply fundamentals, driven by Sally’s Flat with currency movements, textile growth, economic health of his champion key consuming regions and relative profitability of wool sale ram at this operations, are not showing any clear direction as to year’s Goulburn Great Southern where the wool market is likely to head in the short to show with medium term. Rabobank’s Richard Wilson While early indications are that retail apparel and Michael consumption is improving and the price competitiveness White. of wool relative to other fibres has returned to long term Photo courtesy averages, prices have continued to move within a small Southern Weekly band over the six months, to May 2004. Magazine Excess capacity (although this has improved slightly during the first quarter of 2004) for early stage processors, significant semi-process wool stocks held by mills and adverse currency movements have been the key impediments to stronger demand for wool, despite wool sitting at 50 year lows. upon one market, but also because of the buying Latest official forecasts for Australian wool production in behaviour of the region. the 2003-04 year, indicate production will be down 10 per cent on the previous year to 450 million kg (mkg), a Chinese buyers are known to alter buying patterns, as slight improvement on previous forecasts despite their ability to pay higher prices for raw wool has been lingering drought conditions in parts of NSW. restricted by tighter margins further along the value chain. The outlook for 2004/05 is for a 4 per cent rise to 470 kg indicating that supply may have bottomed. This Buyers have sought wool from smaller wool producing is the first rise in production in 14 years and is being regions such as Argentina and South Africa at a lower driven by improved cuts/head and stronger opening flock cost to wool from Australia. numbers in line with better grower conditions. Additionally, Chinese buyers have dealt with the In addition to the abovementioned variables, the key fluctuating price of wool in the Australian market, caused element to understand in the wool market for now and by shifting currencies and supply volumes through indent the future is China. The development of the Chinese pricing (simply sitting behind the market). textile market has seen it become the dominant player in Going forward, the market will see stronger buying at the global wool industry. market prices from China if it is confident of improved China is the largest consumer of wool globally, as well as market conditions and a permanent recovery in retail the third largest producer of raw wool. Although wool demand, not only domestically but also from important imports to China from Australia by volume have fallen by wool consuming countries such as US and Europe.
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