Thursday, February 13

Farming Merino sheep has been part of Badgingarra since land was cleared here.

Many of the original farming families worked in woolsheds to earn money to live, or swapped labour for goods.

Merino sheep numbers rose significantly in the 1980s with the reserve price scheme for wool.

WA was quoted as having more than 30 million sheep at that time.

When the reserve price was removed in the early 1990s, the wool market collapsed and took more than 20 years to rebound.

I recall shearing at Albion Downs, south of Wiluna, at this time, when the Federal Government was actively trying to reduce the national sheep flock and paying farmers to euthanise sheep.

Hundreds were just buried.

After the collapse of the reserve price scheme, we saw cattle start to appear in Badgingarra in large numbers as stations from the pastoral zone looked to find backgrounding properties.

There were a few less sheep, but still plenty to keep all busy.

In 2006, WA experienced a terrible drought.

Stock numbers were reduced again as people were forced to sell. With minimal water and feed, 2007 also was a below average year.

With a reduction in stock numbers, landowners turned to cropping to achieve some return.

The global financial crisis arrived in 2008 and coincided with a great couple of seasons in WA.

The Federal Government offered various incentives for businesses to invest at the time.

Interest rates were dropping, and on the back of a couple of bumper seasons coupled with high commodity prices, a number of farmers invested in better machinery and technology for cropping operations.

Sheep numbers were starting to decline.

Farming rolled along for the next 10 years, with the usual seasonal ups and downs.

Merino wool reached all-time highs mid-decade, with greasy prices reaching $20/kg.

Sheep numbers stabilised, and perhaps even rose.

During this time sheep prices were not exceptional, but markets were growing.

This meant the sale of sheep was more diverse and the Eastern States trade was growing — both for breeding stock and store lambs, as well as a shipping trade taking surplus Merino wether lambs.

All was good. What could possibly go wrong?

The live export of sheep by sea was becoming contentious, and after some video footage was aired showing terrible conditions aboard vessels the industry was put on notice and new animal welfare measures were introduced.

In 2020, the COVID-19 pandemic swept the globe.

The sheep industry was strong, with many markets and good prices, including an Eastern States restock in full swing.

The biggest issue my wife Rachel and I faced was restricted travel in 2020 because of COVID.

Our shearing business had become more and more seasonal, with reduction of the off-season pastoral shearing that was the backbone of the sheep industry before the 1990s.

Travel restrictions meant we could not use our regular transient workforce during the busy months of March and April and from August-November.

Some of our transient workers from the UK, New Zealand, and the Eastern States had been returning to work for us for more than 10 years.

These connections were broken.

In September 2020, we would usually have had 60 people working for us, but instead we had only 25-30.

We were falling a week behind every week.

We shore sheep every day from July 12 2020 to December 22 2020, and we were still behind at Christmas.

The 2021 and 2022 seasons were some of the best ever seen in WA.

Everything was good with high crop yield, and incredible lambing percentages two years in a row.

However, we then got a change of government, and Labor had a “mandate” to end live sheep exports.

After two record seasons in a row, we saw hiccups in late 2021.

The Eastern States restock was finishing, and the the demand for store lambs was starting to reduce.

But no one was too concerned. There was plenty of feed to carry stock a little longer.

Another record lambing in 2022 saw carryover stock competing with new-season stock.

There was less market access but still plenty of feed, so more animals carried through. This was OK, but not ideal.

The following year, 2023, was a tough one, with a late start to the season that finished early.

There were too many sheep and not enough markets.

To cap it off, the Albanese Government then announced its intention to end live exports.

Sentiment has since reached an all-time low in the sheep industry.

After many regional meetings with the Federal Government-appointed live export phase-out consultation panel, and more than 13,000 submissions made regarding the impact of the removal of the live trade, legislation was pushed through in mid-2024.

This was a time when the WA sheep industry was on its knees.

As servants of the wool industry for our entire life, we feel completely abandoned by the Federal Labor Government.

The Labor movement was founded under the “Tree of Knowledge” in Barcaldine, Queensland, by the shearers and pastoral workers of the time.

The Albanese Government have forgotten who and what they were formed for, and who they should represent.

Shame on them.

The removal of live sheep exports means limited options for the sale of Merino wether lambs.

All of these impacts were detailed by many in submissions to the Government before the legislation was pushed through.

The terrible 2023 season started to bite hard in the summer of 2024.

Farmers experienced feed and water shortages, and there was a terrible sentiment across the industry.

With no markets to speak of, the sheep industry reached an all-time low in WA.

Many farmers are destocking their sheep, in particular their Merinos.

Sheep (particularly Merinos) were, and still are being sold, with several farms destocking still.

There were more than 30 million sheep in WA in 1990. Some people believe there are just 6 million in WA now.

Where does that leave us?

Personally, our shearing business is down 30 per cent this financial year so far, with potential to drop even further.

This reduction is pretty typical across WA.

To put that into perspective for local impact, you can look at turnover figures at the Badgingarra Roadhouse, which we own.

Traditionally during the busy shearing months of March-April, and August-November, we see an increase in turnover of about $100,000 per month — caused by what we would estimate as an extra 50-60 people being in the area.

The Albanese Government is responsible (in part) for the declining revenues of small businesses across regional WA.

Farming is a tough game with risk, high costs, and low returns.

When governments fail to support them, farmers can only make the best decisions for their businesses based on what is in front of them.

Lets hope we have a change of government this Federal election and we can save the Merino sheep industry.

The industry has provided food, clothing, and lanolin for thousands of years.

Mike Henderson is the owner of Henderson Shearing, and based in Dongara.

This piece was first published in the Badgingarra Sandpaper.

https://thewest.com.au/countryman/opinion/shearing-industry-figurehead-mike-henderson-lays-bare-the-impact-of-plans-to-ban-live-sheep-exports-c-17611021

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