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Profit Comes From Cost Control, Australian Sheep Study Finds

02 September 2014

AUSTRALIA – The top Australian producers scrutinise farm spend and push output per ewe, a long term study has found.

Over fifteen years of data shows that the top fifth of Australia’s sheep sector control feed and labour costs, while maximising kilos of lamb produced per Dry Sheep Equivalent (DSE).

Furthermore, sale weights and growth rates and reproductive rates are not so important.

These are the findings of a lamb production analysis conducted by Meat and Livestock Australia and farm Business consultant Holmes Sackett, underlining lamb as one of the most profitable livestock enterprises.

Production/DSE is a function of reproductive rate, growth rate to sale and sale weight, and is basically a measure of how efficiently producers are using the feed they’re already growing.

“The top producers are very efficiency-focused,”said Holmes Sackett director Sandy MacEachern.

“They ask ‘how do I efficiently use my labour’, ‘how do I efficiently use my feed’, ‘how can I spend less to get the same result or spend more but get commensurately more again’?

“They have great financial discipline and take the time to work out any spending decision’s effects throughout the whole farm system.”

TheSheepSite News Desk

Top image via Shutterstock

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