High-rainfall south-west has lamb backgrounding potential
The high-rainfall region of south-west Western Australia has the potential to background lambs as per established operations in Victoria, which could grow the Western Australian sheep industry – however forward contracts are likely to be needed to give farmers the confidence to background lambs, as found in a recently completed report commissioned by the SIBI project.
“The report by Dr Graham Lean showed that in Victoria, lamb backgrounding enterprises help to even out the supply of lambs to the market, effectively holding some of the spring supply until later in the year,” said Program Leader Mandy Curnow.
“Currently in Western Australia we have a large supply of lambs in the spring, and a much reduced supply during the rest of the year,” she said. “A more even supply of lambs could improve processors’ supply to existing and new markets, better utilise processor capital, and grow the industry overall.”
Agriculture Victoria estimates that about 50%, or 4 million, of the 8 million prime lambs produced in Victoria each year are backgrounded and finished out of season before being slaughtered. The Victorian farmers, stock agents and consultants interviewed for the report believed that forward contracts are integral to the success of this industry.
Estimated gross margins of Victorian lamb backgrounding indicated that a margin of at least $25/lamb was generated by backgrounding and finishing, giving a return of capital invested in lamb, inputs and labour of at least 25% when store lambs were purchased at seasonally low prices.
The majority of Victorian lamb backgrounding occurs in the high rainfall zone to the south and west of Bendigo. This region is similar to the Western Australian southern high-rainfall zones west and south of Boyup Brook (long term annual rainfall 650 millimetres) where there is a growing season of eight months or longer. Here store lambs, supplied by regions such as the Great Southern, could be backgrounded cheaply on pasture.
The report concludes that while lamb backgrounding in the south-west looks promising, further investigation is needed into ways to cheaply produce lamb feed for a longer part of the year. This may involve more productive and persistent perennial pasture species, silage for sheep, and standing crops.
For more information, view the full report on our website.