Beating down the back-door
A ‘back-door' strategy is helping WA producers boost stocking rates
Having a well-planned exit strategy is playing an integral part in increasing stocking rates and overall productivity for Western Australia's woolgrowers.
Image: woolgrowers undertaking a condition scoring exercise as part of 'The Sheep's Back' exit-strategy program.
Consultant Ed Riggall, who leads ‘The Sheep's Back' - an AWI-funded extension program that aims to help producers increase stocking rates by 10 per cent over a two-year period - says that educating producers about exit strategies is vital in boosting productivity.
Low stock levels are often due to negative incidents, he says. "Bad experience of high stocking rates in poor seasons or stories of how parents or grandparents had attempted higher stocking rates only to be undone by a dry year has forced producers down the dollar-per-head path." He says this leads to hard-won profits and a lack of control.
Having an effective exit strategy in place can combat this and is where ‘The Back Door' module of The Sheep's Back course is important, Mr Riggall says.
During this module the group looks at the financial and psychological costs of a bad year and learns to recognise a bad season.
"A bad season happens incrementally and with this in mind we workshop various exit strategies," he says. "At the end of the module each individual designs their own exit strategy, which the consultants sign off on."
He says this serves two purposes: "First, it ensures that sheep are kept in good condition and the farm is stocked appropriately for the season. And second, it means plans are thought through when growers are not under stress and are better able to make decisions. The benefit is that they are also making decisions ahead of the pack."
Woolgrower Ben Sprigg, from Cranbrook in WA, agrees. "I've become more focused and aware of the fact that if I make a decision early, I'm ahead of the pack. It means we're prepared and not chasing our tail."
Mr Sprigg, who runs 3,400 merino ewes, says his strategy is simple: buy more feed. "However, acting fast to do that ensures I get it at the right price so we remain profitable." He says the course has really helped him focus: "As a young grower who's done a lot of courses, it's the best one I've ever done."
Exit strategies were crucial during the 2006 season, Mr Riggall says. "Most participants have been in control and made decisions early, whether it was selling stock or buying in feed. This equated to getting good prices for sheep, buying grain at good prices and having sheep on hand in excellent condition for lambing."
The exit strategy is based on the DSE (dry sheep equivalent) appropriate for the grower's environment – calculated from rainfall, length of the season and when, on average, the first break occurs.
This DSE calculation can be changed if the season changes. For example, if the season breaks later than expected, the DSE can be revised and an exit strategy put in place. This could involve selling sheep, buying in lupins or removing paddocks from cropping.
"It's a simple concept but producers have to be disciplined to use it," Mr Riggall says. "The result is adequate feed, sheep in good condition and a feeling of being in control."
He says the concept was tested during the 2006 season. "By March 2006, 75 per cent of our participants indicated they had increased their stocking rate. It was right on the back of a bumper year so lots of twins were expected. But when the rain didn't come, growers started putting their exit plans into place – buying in feed early before prices rose, for example.
"Taking action early took the weight off their shoulders and it is a credit to them how well they handled probably one of the worst seasons on record."
More information: Ed Riggall, 08 9736 1583
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