Publication Date

1995

Series Number

Miscellaneous Publication 23/95

Publisher

Agriculture Western Australia

City

Perth

ISSN

0725 - 847X

Abstract

The Pastoral Wool Industry has for many years been in a parlous position. Jennings (1979) in a review of the industry nearly 15 years ago concluded that a significant number of pastoralists were in serious financial trouble, mainly resulting from the inability of station businesses to cope with the worsening terms of trade affecting rural industries. The recent collapse of the wool price has again focused attention on the future viability of the pastoral wool industry. Wilcox and Cunningham (1993) in a review of the industry in October 1993, concluded that the clean price indicator needs to increase by 50 per cent, at least, for sheep businesses to become viable and to provide adequately for owners' needs and capital replacements. The Wool Industry Task Force (unpublished report) has concluded that the evidence is overwhelming that the industry, with its current structure, will not survive the future unless there is very significant and ongoing Government support and subsidy or alternative sources of income.

While the Pastoral Wool Industry as a whole is in trouble, there are obvious regional differences in the likely outcomes of the effect of the downturn. Wilcox and Cunningham (1993) have suggested some parts of the Sheep Industry may survive, including the Kalgoorlie Gumbelt, on the Nullarbor, in the Chenopod communities associated with the sinuate salt lake drainages and on the coast near and immediately north of Carnarvon.

This study was undertaken to assess the factors affecting the relative profitability of sheep production between the regions within the pastoral areas of Western Australia. It is expected that such information will be of relevance in developing policy to address the crisis facing the industry and to assist in the provision and distribution of Government support.

Number of Pages

36

Keywords

Sheep, Wool, Western Australia

Disciplines

Agricultural Economics | Agricultural Science | Agriculture | Sheep and Goat Science

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