How can New Zealand producers increase the level of fine wool production? Research using linear programming as a modelling tool with case studies in Marlborough and Canterbury

Abstract

Fine wool is suitable for clothing, both designer suits and outdoor active wear. Around 6,817 tonnes of clean, fine wool was exported between July 2009 and June 2010 from New Zealand (Beef + Lamb New Zealand Economic Service, 2010c). The majority of this fine wool is produced by Merino sheep. New Zealand currently has approximately 2.1 million Merino sheep that produce fine wool (MAF, 2009). Merinos have predominantly occupied the South Island high country. Since 1998, through the Tenure Review process [Crown Pastoral Lands Act (1998)], much of these high country areas have been returned to Crown control (High Country Accord, n.d.). This process has resulted in 229,909 hectares of high country land placed into the conservation estate from 2002 to 2008. Fine wool production is directly influenced by these changes; therefore, increasing New Zealand’s fine wool production to off-set this reduction and to meet growing markets is currently an important topic. A potential shortfall between fine wool produced and the demand from increasing markets may create opportunity-loss, and be a disincentive for large buyers to purchase New Zealand fine wool products. One potential solution is to increase fine wool production. This research was undertaken to investigate the feasibility of Merino sheep systems in non-traditional areas. Non-traditional Merino properties are identified as farms that comprise a majority of Class six land with current sheep breeds farmed being Corriedale, Halfbred and/or Merino sheep. This research selected seven properties from which data was collected through questionnaires and follow-up interviews with owners or managers.

A linear programme was constructed to compare the breeds. The model selected the Merino as the most optimal breed. Wool and meat prices, lambing percentages and fleece weights were adjusted to determine tipping points between the Merino or Corriedale/Halfbred option. Results showed that further investigations on a case-by-case basis would be worthwhile considering the robustness of the Merino breed within the model and the strong indication of the Merinos’ success in comparison to the alternative breed. Farmers in these non-traditional areas should investigate farming Merinos in their relatively dry, stony areas or as a whole-flock breed change. Constraints to farming Merinos were identified by current and potential farmers as well as mitigation methods that current Merino farmers identified as successful techniques to enable farming of the Merino breed in these non-traditional areas.