Merinos profitable

Ruapehu Bulletin, Volume 6, Issue 314, 21 November 1989, Page 12

Merinos profitable

Merinos are proving to be highly profitable for many North Island hill countrv farmers.

Farming merinos has been more profitable than traditional breeds for every year throughout the 1980's say MAF Technology's Don Wright, Tony Rhodes and Guy Hamilton in a paper presented at the recent New Zealand Grasslands Association Conference in Wanganui. "The strong positive showing for merinos over the last decade was based on performance figures from MAF's Wanganui Hill Research Area, and published wool and lamb prices. "An average farm carrying 3,200 sheep stock units in Wanganui is expected to return an extra $64,000 in disposable farm surplus in 1989/90 by farming instead of crossbred sheep. "This year merinos at the Wanganui Hill Research Area produced gross margins of $337 per hectare, 48% higher than those for Romneys." The authors say that these higher returns justify spending up to $120 more per stock

unit for merino purchases. "Having made the decision to farm merinos, the options of whether to run ewes and lambs or wethers depends

mainly on individual preference and labour availability. "Buying merinos is the option we prefer as cost savings of breeding up from a crossbred flock do not warrant the lower returns in the earlier years."

The authors warn that merino farming requires top management and some farming conditions are more suitable than others. Flystrike, footrot and internal parasites may also cause problems. Balancing this however, is the merinos longer breeding season, ease of mustering, longevity and browsing habits. 'The premium wool returns are however, the major benefit from running merinos. Farm management must therefore concentrate on wool quality and quantity. "With more reliable pasture growth New Zealand has an advantage over Australia in supplying the world market with consistently high quality fine wool. "New Zealand produces only one per cent of the world's fine wool, and so even dramatic increases in NZ's production will have a negligible effect on prices. Providing we concentrate in producing top quality product, saies at premium prices are ensured even if average prices drop." The authors say that although the price of most of the fine wool is about 20% down from 1988/90, superfine wool is buoyant and is expected to remain so. A sale of elite superfine merino rams will be held at Flock House, Parewanui Road, Bulls, on Thursday 7 December 1989 and starting at 1pm.