The joint report was commissioned by Meat & Livestock Australia and Australian Wool Innovation and released on November 28.
It surveyed 1963 sheepmeat and wool producers between September 29 and October 4.
Producers were initially invited to complete an online survey with the final sample complemented with a smaller number of phone interviews.
MLA’s Jenny Lim said the new format of the survey allowed for a deeper understanding of the breed make-up of the flock.
“The new survey format also analysed sales channels used by producers across different states and farm size,” Ms Lim said.
“Saleyards continue to be the dominant sales channel for producers, further highlighting the importance of saleyards for the industry.
“Specifically, 58 per cent of producers said that saleyard auctions were the main channel used, with over-the-hooks sales the second most used method at 23 per cent.”
In addition, larger producers with 10,000 or more sheep are more likely to use direct sales. NSW had the strongest saleyard usage with 73 per cent of producers using this channel for sheep and lamb sales.
The survey noted that 46 per cent of producers are looking to increase their flocks in 2023, with 60 per cent hoping to expand operations and 47 per cent are expecting favourable conditions in the next 12 months.
Strong growth expectations are being seen in Queensland and NSW, with larger producers indicating an intention to increase or maintain their flock numbers.
“Analysis of the reported change in the number of lambs suggests a forecast increase of approximately 1.7 million lambs over the estimated 2022 flock size, an increase of six per cent on the 2022 estimates,” Ms Lim said.
“This result highlights the importance of considering the reported changes in flock size rather than just producers’ disposition to change.”
Regarding potential industry hurdles, the majority of producers surveyed are expecting an increase in input costs and finding skilled labour to be more difficult in the next 12 months.
Despite these headwinds, the sentiment around the sheepmeat industry is extremely positive moving forward, with a 67 per cent net positive rating among sheepmeat producers across Australia.
“With Merinos making up 40 per cent of the total lamb flock and prime lambs at 35 per cent, the challenges around costs and labour seem to have less of an impact on decision making around flock growth than may have been previously expected,” Ms Lim said.
For further information and to view the full report, visit the MLA website
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