Case study: Tony Overton from Walcha, NSW

Woolgrower Tony Overton from Walcha 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 Tony Overton of ‘Europambela’, the difference to his profitability is $50,000 gained through lice control and presenting sheep for shearing in drafted mobs.

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.

Tony Overton manages a flock of 15,000 Merino sheep on ‘Europambela’, one of the larger superfine operations in the New England region of New South Wales. In ‘Pick of the Draft’, Tony talks about the importance of the good relationships with his shearing contractor, wool broker and woolclasser, who work as a team to deliver a premium superfine wool product.

‘I give my contractor Col the job I want done and leave the responsibility to him,’ says Tony. ‘I get the shed right and present the sheep right and it’s his responsibility to get the job done right.’

Good communication is the key to a good outcome, especially in a shed like Tony’s which employs two shed staff per table. Tony says communication runs right through the shearing process and includes a post shearing assessment of how the job went.

‘At the start we talk about our plans and what we think the season’s done,’ he says. ‘While we’re on the job, there’s a lot of discussion between the woolclasser and the wool broker. After the sales we talk again, sometimes by email, to see what happened. Maybe our focus was too much on micron and not enough on style. It’s important to look back at what you’ve done, what worked and what didn’t.’

Before shearing starts, Tony puts up a large printout of all the mobs in the shearing shed kitchen and gives a copy to the contractor and the woolclasser.

‘The communication about mobs is there from the start,’ he says. ‘I make notes on the printout about things the contractor and woolclasser need to know. For example, our ewe hoggets are rotationally grazed, while our wether hoggets tend to be set stocked. Even though the wool lines go together there’s going to be subtle differences in staple length or micron.’

The AWEX model presented in the DVD emphasises the importance of the mob concept to the final quality of the clip.

Lionel Plunkett, senior market analyst for AWEX says ‘If you’re not presenting your sheep to the shed in properly drafted lines, discounts for mixed length and mixed quality wool could lead to a loss of at least 15 cents per kilogram. For our 3,000 head flock this equates to $2,000.’

For Tony’s superfine flock, not paying such careful attention to drafting his sheep into mobs could cost him $10,000 in discounts.

Tony also uses additional measurement to give buyers hard figures on what they’re purchasing.

‘The buyers need to know if the line is going to fit the market and the job they want to do,’ he says. ‘If the product’s wrong, they won’t buy it from you the following year.’

Lionel recommends additional measurement of wool for staple length and strength. ‘If you have combing length wool, you should measure it,’ he says. ‘It will help to increase the competition for your wool.’

The AWEX model also assesses the loss to a typical woolgrower of having lice infested sheep. ‘When you factor in the loss of production and discounts for cotted and coloured wool, a 3,000 head flock could be facing a loss of over $10,000,’ he says.

On the basis of AWEX’s model, Tony could be facing a loss of $40,000 for lice issues. Fortunately his property has some built-in lice protection.

‘Our property has several boundaries with major roads,’ Tony says. ‘In areas not alongside roads we’re putting tree lots on those fence lines. Effectively that means we are double fencing the whole place.’

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

Image: Tony Overton, ‘Europambela’, Walcha, NSW

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

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