Friday, April 19, 2024

Proving consultants were wrong

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Sheep farmers are enjoying a golden patch but it would be a challenge to find a more profitable breed than Merino-Romney halfbreds. That is a contrast to the last rites that were read to the mid micron sector by consultants 18 years ago. Neal Wallace meets some farmers who ignored those forecasts of impending doom and stayed loyal to halfbred sheep.
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John Duncan confesses to never being a great meeting goer. 

One the Otago sheep and beef farmer recalls attending was in Ranfurly in about 2000 at which he was told there was no future for mid micron wool.

International consultants McKinsey had just released a report on how to improve wool grower profitability. Recommendations included dissolving the Wool Board and, alarmingly to owners of mid micron sheep such as Duncan, warning the fibre did not have a future.

At that stage his family had been farming Merino-Romney halfbreds for about 80 years and breeding rams for about 20 years, primarily because the breed suited the challenging Maniototo climate and topography.

Because of that Duncan said he, wisely as it turned out, chose to ignore the recommendations.

“They do well here, a mix of irrigation and high country. They hang on well when it gets dry,” he said.

When ground conditions are wet Merinos can have feet problems but that is not such an issue with halfbreds.

Today a mix of wool contracts, new uses for the fibre, the late maturing of lambs and fertility rates comparable with downland crossbreeds means a halfbred lamb can easily return more than $200 and ewes each year clip $70 worth of wool plus lambs.

The Duncans farm Craigneuk, a 7000ha property at Puketoi on the Maniototo plain, rising from basin-flats to hill country 1000m above sea level on Rough Ridge.

Son Johnny said while the breed is enjoying prosperous times the reality is it suits that type of country. He estimates about half the farmers in Maniototo farm halfbreds.

Johnny Duncan inspects wool on a Merino-Romney halfbred ewe hogget.

Halfbred sheep suit his diverse property ranging from 3500ha of irrigated flats and dry land rolling downs to 6000ha of extensive tussock hill country.

Hore runs 11,000 halfbred ewes, 2600 hoggets and 150 cows, staying loyal to a breed he describes as versatile and which has been run on Ida Vale for over 70 years.

“They have been very good to me,” he said.

Wool weights over all his flock average more than 5kg while lambing percentages are greater than 140%.

Hore said when conditions get dry the halfbreds hang on longer than other breeds and when drought breaks they take off sooner.

They need more work than a strong woolled crossbred, they can have feet problems and prefer wide-open space rather than confinement.

But their versatility and returns for wool and lamb are ample compensation.

In a favourable season Hore finishes all his lambs and, like this year, can carry some through for sale in late winter or early spring.

But if he must sell them as store he has a ready market for newly weaned lambs.

Hore said he often thinks back to the McKinsey report that forecast doom and gloom for mid micron wool and said he has no regrets ignoring its recommendation.

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