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.
The tour gave the group insights into the unique role the state plays in Australia’s agricultural landscape due to its geographical distance and export-orientated market.
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.
Members in 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 signed up for the tour to discover more about the Western Australian sheep sector and how it might impact their own operation.
They wanted to understand any risks or potential upside for New Zealand lamb producers and identify any opportunities for the New Zealand and Australia sheep industries to work closer together.
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 creates for New Zealand producers.
"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.
"Even traditional sheep properties are expanding crop area."
Mrs Hancox said she remained optimistic about the future prospects for New Zealand’s sheep industry.
The tour 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.
Mr and Mrs Ludemann own EGL Pastoral Group, a large-scale farming business consisting of lamb finishing, breeding and dairy properties.
Mr Ludemann said they learnt "a heck of a lot" on the tour.
"The feed lotting was of great interest to me, and I enjoyed learning more about how they’re incorporating this into their systems to help combat the Mediterranean-style weather climate."
Another part of the tour he found really interesting was how much of Australia’s lamb production was consumed locally.
"In New Zealand this figure is only about 5%, but in Australia it’s much higher at around 35%."
He found it useful learning about the different machinery being used on Western Australia farms.
"One of the farms we visited were using some lamb weighing scales that allow for real-time weight monitoring directly from the paddock."
He had not seen the technology available in New Zealand before.
"I’m now investigating purchasing some of these scales for our own operation."
Mrs Baird said she left the tour feeling positive about the sheep and wool industry in New Zealand.
She and her husband had no plans to reduce the flock size of their 2000 Tefrom ewes on their sheep, beef, dairy grazing and cropping operation.
Cropping was a big part of the farms they visited on the tour.
The crops were used in feed lots on the farm.
Lambing percentages were higher in New Zealand than in the farms they visited on the tour.
"They’re worried that they’re not going to be able to get lambs away."
Fine wool was grown on all of the sheep farms they visited.
Australian farmers were negative about the future of fine wool, despite being paid more for their fibre than strong wool growers in New Zealand.
Many Australian farmers were introducing sheep shedding genetics to their flocks due to frustrations relating to shearing and low wool prices.
The negativity about wool in Western Australia was "strange".
"Their wool is probably worth two to three times as much as us and they’re a wee bit negative about it, but yet we’re in a worse situation."
Ms Corkran said the Western Australian sheep sector has experienced significant change over recent years.
"Western Australia’s sheep industry is undergoing a major shift, driven by the phase-out of live export and evolving farm systems that must fit into the climatic environment."
Sheep numbers were declining in Western Australia, with a noticeable move away from wool breeds to meat and shedding breeds.
However, the merino flock was still very much a part of the system, she said.
Ms Corkran said the tour highlighted the innovation, resilience and changes in strategic direction being demonstrated by farmers and others throughout Western Australia’s food and agri supply chain as they adapt to the transforming environment.
Several of the New Zealand producers observed strong parallels between the current situation in Western Australia and their own challenges, especially around wool viability and flock reduction.
"The New Zealand-based farmers and I were able to gain some valuable insights by comparing systems, questioning approaches and exploring new ideas."
