Producing Higher Value Wool through a Transition from Romney to Merino Crossbred: Constraining Sheep Feed Demand

Lydia J Farrell,Thiagarajah Ramilan,Paul R Kenyon,Peter R Tozer,Lydia M Cranston

doi:10.3390/agriculture11100920

Lydia J Farrell, Thiagarajah Ramilan + Show 3 more

Open Access

https://doi.org/10.3390/agriculture11100920

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Abstract

A strategy to increase wool income for coarse wool (fibre diameter > 30 µm) producers through a transition to higher value medium wool (fibre diameter between 25 and 29 µm) was identified, with previous analyses allowing sheep feed demand increases to impractical levels during the transition period. This study modelled a whole flock transition from Romney breed to a ¾Merino¼Romney flock through crossbreeding with Merino sires, with sheep feed demand constrained between 55% and 65% of total grown feed. Transition was complete after 12 years, and the final ¾M¼R flock had higher COS (cash operating surplus; NZD 516/ha) than the base Romney flock (NZD 390/ha). Net present value analyses showed the transition always had an economic benefit (up to 13% higher) over the Romney flock. In a sensitivity analysis with sheep and wool sale prices changed by ±10%, higher sheep sale prices reduced the economic benefit of the transition (NPV up to 11% higher) over the Romney flock, as sheep sales comprised a higher proportion of income for the Romney flock, and higher wool sale prices increased the benefit (NPV up to 15% higher) of the transition to ¾M¼R over the Romney flock. This study demonstrated a whole flock transition from Romney to ¾M¼R breed was profitable and achievable without large variation in sheep feed demand, although the scale of benefit compared to maintaining a Romney flock was determined by changes in sheep and wool sale prices.

Highlights

Published: 25 September 2021More than 50% of sheep in New Zealand are Romney breed, a dual-purpose breed producing lambs for meat and coarse wool [1]
Model output for the grading up transition for sheep feed demand, ewe numbers, production, and economics is presented in the following subsections
It can be assumed that constraining sheep feed demand during the transition would reduce disruption to the other on-farm enterprises such as the beef herd, which is important for pasture management [34] and diversification of income sources, indicating the transition modelled in the current analysis is likely more appealing and achievable for New Zealand farmers

Summary

Introduction

More than 50% of sheep in New Zealand are Romney breed, a dual-purpose breed producing lambs for meat and coarse wool (fibre diameter greater than 30 μm) [1]. μm) has increased compared with coarse wool over the past years, with even higher prices available for fine wool (fibre diameter < 24 μm) [1]. The composition of wool produced in New Zealand is 77% coarse, 15% medium and 8% fine [1]. Sheep producing medium and fine wool are typically farmed on relatively high-altitude, less-fertile, and steep land [1]

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Conclusion