Merinos may expand from high country
Synonymous with the South Island high country, merino sheep may be farmed more widely as farmers are lured by high fine wool prices and genetic improvements.
Merino woolgrower Bill Sutherland, of Benmore Station near Omarama, said it was boom times for the New Zealand merino industry.
‘‘In a time when strong wool prices are at a historical low, the prices for merino wool have rarely been better,’’ he told the New Zealand Grassland Association conference in Twizel.
While a susceptibility to footrot has limited merino farming to drier high country areas such as Central Otago and the Mackenzie Country, work is underway to develop footrot-resistant fine wool sheep that produce more lambs and feed on better forages so that they can compete with crossbred sheep like romneys on many parts of eastern hill country.
CP Wool supply relationship manager Roger Fuller said merino wool prices were the highest since the 1980s at the start of this season.
‘‘Then, prices would spike on a specific micron, but this year prices are strong for the full merino wool range, 23 micron and finer,’’ Fuller said. This followed a drop in merino sheep numbers and wool volumes in Australia after prolonged drought.
The biggest demand was for 18 to 21 micron wool, used for active outdoors clothing by brands such as Icebreaker and SmartWool.
‘‘Returns to farmers are even better as they are clipping more wool per head on this wool than the finer end,’’ Fuller said.
At peak, 18 micron wool was fetching $28 a kilogram clean at auction, about $20 a kg greasy. In comparison, crossbred wool prices were barely $3 a kg clean, insufficient to cover shearing costs.