In this video, Nigel is out in the paddock with Mark Ferguson from neXtgen Agri, talking about one of the foundations of Kerin Poll Merino: how we drive turnover and profit by converting grass into high quality, saleable livestock products as quickly as possible.
Nigel explains that it is one thing to have an opinion, but it is valuable to get the perspective of someone like Mark, who works right across New Zealand and Australia with a wide range of sheep flocks. That outside view helps us benchmark where the industry is heading, regardless of breed, and it gives context to how we keep building the Merino enterprise here.
Fertility and Growth as the Fundamentals
Mark is clear that fertility and fast growth are the fundamentals of sheep production. Without lambs on the ground there is no cash flow, and without growth, costs mount quickly. If lambs are slow to grow, they take too long to finish, which drives up maintenance feed costs and adds unnecessary labour to the system. For any livestock business, and particularly in Merinos, those two traits, fertility and growth, are the starting point for profitability.
The True Cost of Slow Growth and Low Fertility
Nigel builds on this by pointing out something we rarely hear discussed, the real cost of slow growing and low fertility sheep. Social media and industry talk often focus on traits like fat, muscle or dag management, but the single biggest cost in sheep and Merino enterprises is animals that do not grow quickly or fail to produce enough lambs.
We believe we must have animals that can hit 25 to 26 kilos by five and a half to six months if the season allows, with the genetics to go on to 38 kilos if required. Having that choice, built into the genetics of the flock, is critical. The biggest cheat sheet to labour efficiency is selling those animals quickly. The earlier they leave the farm, the more time our team has to manage grass and fine tune production systems. Nigel often says the biggest one percenter in the business is fast early growth and plenty of lambs on the ground, with all other traits added on top.
Building Labour Efficiency and Adding Value
Mark agrees, adding that labour efficiency also comes from reducing the need to chase problems. Worm resistance, dag resistance and fly resistance are essential traits because they save time, money and stress in livestock systems. Beyond saving costs, there is also the opportunity to add value through carcass quality, IMF (intramuscular fat) and maintaining wool quality. These are the traits that deliver upside and create premium opportunities for Merino seed stock producers and their clients.
Fertility Benchmarks and Mindset Shifts
Nigel explains that in our flock, fertility means nothing less than 135 percent weaned in Merino to Merino matings, not marked but weaned. That is the standard we aim for. Mark notes this represents a mindset shift for the whole industry. Instead of being comfortable with 80 or 90 percent, we need to reimagine what is possible.
Nigel compares it to the four minute mile. For years it was said that no human would ever run it. Once one man did, 47 more broke the barrier within nine months. The same applies to sheep production. Once someone proves higher fertility and growth rates can be achieved, there is no reason others cannot follow and improve.
The Next Phase: IMF and Genomics
What excites us about the next phase of Merino breeding is the integration of IMF into the genetics. This year, we have four rams ranked in the top 1 percent in Australia for IMF. These are the kinds of traits you cannot see by eye, but they create real value for clients who buy seed stock. With the use of genomics and ASBVs, we can now bring IMF and other value adding traits quickly into the package under the skin of the animal. For us, it is a clear direction to move in and keep pushing Merinos forward.
