Southern farmers are optimistic about the future of the fibre they grow after touring several sheep and wool operations in Western Australia.
A group including 10 New Zealand farmers embarked on a "sheep and wool knowledge tour" across the state for a week last month, RaboResearch senior analyst Jen Corkran said.
Operations visited included the Australian Wool Exchange in Bibra Lake, Peel Feedlot in Mardella, Hillcroft Farms near Narrogin, Elders Wool Store in Rockingham and Yarranabee Pastoral in Highbury.
The group of 27 included Ele and Grant Ludemann, of North Otago, Nelson and Fiona Hancox, of Tapanui, Murray and Ruby Baird, of Balfour, 11 Australian farmers and several Rabobank staff, including Ms Corkran.
Mrs Hancox said they joined to discover more about the Western Australian sheep sector and how it might impact their own operation.
Livestock the Hancox run includes 27,000 ewes and 500 Angus cows.
Mr Hancox said a key takeaway was the potential opportunity lower sheep numbers in Western Australia created.
"Their summer is like our winter, with nil growth. They are starting to grain feed, in feed-lots and grow finishing crops for lambs, to hold for the meat processors."
The lamb numbers were dropping quickly in Western Australia and farmers were increasing cropping area.
Mrs Hancox said she remained optimistic about the future — the tour had reinforced it was just New Zealand and Australia competing for global sheep meat exports and Western Australian sheep numbers were declining and a global shortage of lamb was looming.
"We’re now looking at increasing our sheep number or kilograms of lamb meat sold per hectare."
Mr and Mrs Ludemann own EGL Pastoral Group, a large-scale farming business.
Mr Ludemann said they learnt "a heck of a lot" on the tour.
He found it useful learning about the different machinery being used.
"One of the farms we visited were using some lamb-weighing scales that allow for real-time weight monitoring directly from the paddock.
"I’m now investigating purchasing some."
Mrs Baird said she left the tour feeling positive about the sheep and wool industry in New Zealand.
Lambing percentages were higher in New Zealand, and many Australian farmers were introducing sheep shedding genetics to their flocks due to frustrations related to shearing and low wool prices.