Sheep Farming in Australia Industry Market Research Report Now Updated by IBISWorld

Share Article

Increased rainfall over the two years through 2010-11 caused a reduction in turn-off rates, with farmers looking to rebuild their flocks while pasture quality was improving. For this reason, industry research firm IBISWorld has updated its report on Sheep Farming industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Increased costs of keeping livestock resulted in higher turn-off rates, creating excess supply and depressing prices.

Following years of losses, operators in the Sheep Farming industry in Australia have returned to growth for the majority of the past five years. The return of rain in 2009-10 marked the end of the persisting drought. Increased rainfall improved pasture feed, reducing the cost of keeping livestock and allowing farmers to expand production. According to IBISWorld industry analyst Brooke Tonkin, “Industry revenue has remained volatile, moving in line with fluctuations in commodity prices, rainfall and production.” Industry revenue is forecast to grow at an annualised 3.2% over the five years through 2014-15, to reach $3.2 billion.

Australia is home to almost 70 million sheep, with wool production historically forming the largest portion of industry revenue. However, year-on-year production of wool or livestock for meat depends on weather conditions. Rainfall influences the quality of pasture feed and therefore farmer reliance on stockfeed. Increased rainfall over the two years through 2010-11 caused a reduction in turn-off rates, with farmers looking to rebuild their flocks while pasture quality was improving. “Lamb prices jumped in response to limited supply,” says Tonkin. This coincided with a 29.8% increase in wool prices, caused by low supplies of high-quality wool. These price spikes helped the industry post strong revenue growth over the two years through 2010-11, despite reduced sales volumes. However, reduced rainfall over the two years through 2012-13 reversed this trend. Increased costs of keeping livestock resulted in higher turn-off rates, creating excess supply and depressing prices. A correction of prices over the two years through 2014-15 is anticipated to return revenue to growth. Industry revenue is forecast to rise 4.8% in 2014-15. The industry exhibits low levels of market share concentration.

External factors, particularly weather conditions, will determine the performance of the Sheep Farming industry over the next five years. Continuing high prices for lamb and wool will bode well for industry revenue. Export revenue is projected to grow over the five-year period, on the back of rising incomes and demand for lamb in overseas markets. However, the industry's positive demand factors will amount to little should El Nino weather patterns return over the next five years.

For more information, visit IBISWorld’s Sheep Farming industry in Australia report page.

This industry consists of farms that are primarily engaged in sheep farming. Sheep are farmed for their meat and wool.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Gavin Smith
IBISWorld
+61 396553838
Email >
Visit website