Woolgrower Justin McClure from Tilpa New South Wales is putting his shearing practices on the line to help other woolgrowers save money by making small on-farm changes. He is one of five woolgrowers featured in a new DVD ‘Pick of the Draft’ produced by Australian Wool Innovation (AWI) and Australian Wool Exchange (AWEX). The DVD puts hard dollar values on poor sheep management and shearing practices and estimates the money that can be saved through simple improvements.

The program isn’t just another training program, according to DVD presenter Scott McGregor. ‘It will be great entertainment as well as showing growers how simple steps can make a big difference in profitability,’ he says.  For Justin McClure ‘Kallara Station’, the difference to his profitability is $25,000 gained through additional measurement and avoiding contamination.

The DVD presents a computer-based financial model developed by AWEX to show woolgrowers how much cutting corners with their wool clip is really costing them. The model is based on an average woolgrower running a flock of 3,000 Merino sheep, cutting 4.5 kilograms of 19 micron greasy wool.  The total clip is 13,500 kilograms.

Justin McClure’s property ‘Kallara Station’, 200 kilometres south of Bourke on the Darling River, is certified for organic production of both meat and wool. He joins 15,000 ewes from his 30,000 head flock, which comprises of a Merino flock producing organic wool and Dorpers for organic meat. His biggest production challenge is avoiding contamination between the two, which could have a serious impact on the quality of his wool.

‘Dorpers are very intelligent animals – if they want a feed they will find a way to get it,’ says Justin. ‘You need to manage your pasture and your rotational grazing so the Dorpers have got good feed in front of them and will stay at home.

‘To keep the Dorpers and Merinos separate you need a fence that’s strong and close to the ground. We’ve used hingejoint, second hand steel pickets and barbed wire from the old fence, along with a drill rod from the mining industry for strainers! It’s a big cost.’

The AWEX model presented in the DVD emphasises the importance of avoiding contamination to the final quality of the clip – and shows how much wool contamination could cost a grower like Justin.

‘When Merinos have been run with exotic breeds known to have dark or medullated fibres, such as Dorpers, discounts of up to $1 per kilogram can apply,’ says Lionel Plunkett, senior market analyst for AWEX. ‘In our sample flock that could cost the woolgrower as much as $13,500.’

Justin is acutely aware of the risk, which could cost his organic wool enterprise up to $20,000 according to the AWEX model. ‘We’ve got a dividing line down the centre of the property and we have a woolshed that we only use for Merinos,’ he says. ‘We never shear any Dorpers or Dorper-infused sheep in that shed.’

As well as taking extra care of his sheep, Justin does what he can to take care of his staff and contractors, including providing waterfront accommodation.

‘We’re a long way from anywhere and in the middle of summer, it’s very hot, dry, hard work,’ he says. ‘If I want people to work out here, I need to make it attractive for them. The more comfortable I can make it, the better quality people I can attract and as a result, the better quality job they will do.’

Justin’s accommodation is situated on the river and when he’s not using it for shearers he rents it out to fishermen.

‘The shed staff get a good night’s sleep down here and a lot of them don’t mind going fishing if we need to drop a person off,’ he says. ‘The place is air conditioned and it does the job.’

Justin also uses many of the procedures recommended in the DVD, including additional measurement. The AWEX model emphasises the importance of additional measurement in maximising competition for the final product. Lionel Plunkett, senior market analyst for AWEX says that woolgrowers can easily end up with a discount of between 30 and 50 cents per kilogram if they have not measured for length and strength.

‘With test costs of around three cents per kilogram the message is clear,’ he says. ‘If you have combing length wool, you should measure it.’

Based on the AWEX model, Justin could be saving up to $5,000 by carrying out additional measurement.

‘We embraced the concept of additional measurement early on,’ Justin says. ‘If you know your product you can sell your product. I like to look at it from the buyer’s point of view. If he knows what he’s getting he can value add the product. If he doesn’t, he has to discount the product.’

The generous tips, insight and advice given by Justin and the other woolgrowers in the ‘Pick of the Draft’ demonstrate the simple ways woolgrowers can keep costs down and maximise profits.

Image: Justin McClure, ‘Kallara Station’ Tilpa, NSW with DVD presenter Scott McGregor 

To get your free copy of the Pick of the Draft DVD, email your name and address to shearing@wool.com; or call the AWI Helpline on 1800 070 099.

Australian Wool Exchange
www.awex.com.au 
02 9428 6100