When people think about sheep enterprises in Australian agriculture, the focus often goes straight to lamb or mutton prices. Wool is sometimes seen as old-fashioned, or even dismissed as a sideline. But as Nigel explains, wool is one of the smartest tools we have for building resilience and profitability in our business.
Wool as More Than Just a Product
Nigel often says he finds it hard to explain how we treat our wool clip because it is so different to the way most people manage theirs. For us, wool is not something we rush to sell the moment it is shorn. Once it is tested, it sits quietly in storage. We do not have to feed it, water it or manage it. It is there, waiting until the timing is right.
That makes wool a unique commodity. It acts as a buffer between the great years, the good years and the average years. While sheep producers across Australia ride the highs and lows of mutton and lamb markets, we hold wool in store and use it to smooth out volatility.
2023: Proof of Wool’s Value
The clearest example of this strategy came in 2023. Commodity prices for lamb, beef and mutton collapsed by 74 percent in just four months. Nigel points out that in that year, very few livestock businesses would have been in the black. But because we had held wool in reserve, we were able to bring in sales equal to two and a half years of production.
Those wool sales kept our cash flow alive, allowed us to meet our commitments, and built credibility with our financer. For us, it showed exactly why wool remains so valuable in a mixed sheep enterprise. It is not just a product, it is financial stability sitting in a bale.
Why 60 Million Matters
Looking beyond our own business, Nigel highlights the importance of the national flock. He believes 60 million head is the sweet spot for Australia. At that level, demand for mutton, lamb and wool balances out, keeping all three commodities well valued. It is another reminder that the strength of the Australian sheep industry lies in maintaining balance across livestock and wool production.
Long-Term Returns from Wool
Our rolling 10-year average return from wool harvest is $83 per adult ewe. That is not a figure we are prepared to walk away from. As Nigel says, giving up wool would only increase risk, not reduce it, because it would remove one of the most consistent revenue streams in the business. Wool adds stability and spreads risk across markets, which is exactly what every sheep enterprise needs.
Merinos and the Third Enterprise
All sheep enterprises rely on fertility and growth. They are the foundations that drive cash flow and efficiency, no matter the breed. What makes Merinos unique is that they bring a third enterprise into the mix: wool. That extra stream of income is what gives Merino-based operations like ours an edge in Australian agriculture.
Nigel makes it clear that for us, wool will never be something we give up. It underpins the resilience of our business, supports profitability through downturns, and ensures Kerin Poll Merino remains strong into the future.
The Future of Wool in Agriculture
The debate about wool’s future comes and goes, but what we see every year is proof of its value. Wool is not just about the fibre itself, it is about the role it plays in managing risk, supporting cash flow, and keeping sheep enterprises sustainable. For us, the wealth in wool is real. It is a cornerstone of how we run Kerin Poll Merino, and it will continue to play that role as the sheep and Merino industry in Australia keeps evolving.
