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Drought yet to hit wool: ABARE
24 Sep 2003
Specialist wool producers' incomes reached a 25-year high despite the drought, but wool farm profits and earnings will drop in the next few years as flocks are rebuilt, according to ABARE's 2003 Australian Wool Industry Report.
Net cash flow for specialist wool producers increased from an average $51,600 in 2001-2002 to about $55,000 in 2002-2003. Farm cash incomes for mixed enterprise farms (wool, beef and crops) fell from $128,400 in 2001-2002 to $67,400 in 2002-2003. But farm cash incomes for specialist wool producers will fall in coming years due to the reduction in sheep numbers, ABARE says. This will hit farm business profits.
The sheep flock has declined by more than a third since a peak of 173 million in 1990. The 2002-2003 drought reduced numbers by a further 8 million to 98 million as more sheep were slaughtered and died, and lambing percentages declined. The number of merino sheep has fallen by more than 40 million since 1992.
Sheep numbers are forecast to increase, however, by 3 per cent to 104 million in 2003-2004.
The Age, 24/9/03.
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