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

Lydia J. Farrell, Peter Tozer, Paul R. Kenyon, Lydia M. Cranston and Thiagarajah Ramilan
Additional contact information
Lydia J. Farrell: Teagasc Animal & Grassland Research and Innovation Centre, Mellows Campus, H65 R718 Athenry, Ireland
Paul R. Kenyon: School of Agriculture and Environment, Massey University, Private Bag 11 222, Palmerston North 4442, New Zealand
Lydia M. Cranston: School of Agriculture and Environment, Massey University, Private Bag 11 222, Palmerston North 4442, New Zealand
Thiagarajah Ramilan: School of Agriculture and Environment, Massey University, Private Bag 11 222, Palmerston North 4442, New Zealand

Agriculture, 2021, vol. 11, issue 10, 1-17

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.

Keywords: bio-economic; modelling; New Zealand; farm system; flock dynamics; ewe age (search for similar items in EconPapers)
JEL-codes: Q1 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 (search for similar items in EconPapers)
Date: 2021
References: View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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