It was assumed that the lambs were crutched but not shorn to simplify the gross margin. In many cases they would be shorn, which is unlikely to change the overall gross margin due to wool income covering the cost of shearing in many cases. Freight costs will vary a lot, but in this zone abattoirs and saleyards are relatively close. Selling costs are minimal with only MLA levies taken out, as over recent years the majority of lambs are sold direct, and do not necessarily have an agent cost. Eastern Riverina Gross Margins Some more detailed assumptions behind the Eastern Riverina zone Gross Margins: - The lamb is assumed to be born in June and sold as a store in October at 28 kg. It is a Merino 1st cross from a terminal sire. For the first 50 days lambs are backgrounded on green grass/early ma- turing dry grass into early December, when they are moved onto lucerne, which at this time of year is still actively growing. The lucerne is part of many pastures in this zone, although there is a lot of variation in individual farms. Most are dryland, but irrigated lucerne is also used to background and fatten lambs on some farms. Thus, they gain 10 kg, or 100 g/hd/day over 100 days, which again is considered conservative. In many cases, they would continue to graze the lucerne till they reach 50 kg, but this is also highly dependent on summer rain and residual soil moisture levels from the spring. They then assumed to be fed a grain ration for 43 days, a mix of 55% barley, 25% lupins and 20% hay. The feed conversion ratio is 6.1:1 as fed. They gain 280 g/hd/day for 43 days. Labour costs are similar to the high rainfall zone. It was assumed that the lambs were crutched but not shorn to simplify the gross margin. In many cases they would be shorn, which is unlikely to change the overall gross margin due to wool income covering the cost of shearing in many cases.
It was assumed that the lambs were crutched but not shorn to simplify the gross margin. In many cases they would be shorn, which is unlikely to change the overall gross margin due to wool income covering the cost of shearing in many cases. Freight costs will vary a lot, but in this zone abattoirs and saleyards are relatively close. Selling costs are minimal with only MLA levies taken out, as over recent years the majority of lambs are sold direct, and do not necessarily have an agent cost. Eastern Riverina Gross Margins Some more detailed assumptions behind the Eastern Riverina zone Gross Margins: - The lamb is assumed to be born in June and sold as a store in October at 28 kg. It is a Merino 1st cross from a terminal sire. For the first 50 days lambs are backgrounded on green grass/early ma- turing dry grass into early December, when they are moved onto lucerne, which at this time of year is still actively growing. The lucerne is part of many pastures in this zone, although there is a lot of variation in individual farms. Most are dryland, but irrigated lucerne is also used to background and fatten lambs on some farms. Thus, they gain 10 kg, or 100 g/hd/day over 100 days, which again is considered conservative. In many cases, they would continue to graze the lucerne till they reach 50 kg, but this is also highly dependent on summer rain and residual soil moisture levels from the spring. They then assumed to be fed a grain ration for 43 days, a mix of 55% barley, 25% lupins and 20% hay. The feed conversion ratio is 6.1:1 as fed. They gain 280 g/hd/day for 43 days. Labour costs are similar to the high rainfall zone. It was assumed that the lambs were crutched but not shorn to simplify the gross margin. In many cases they would be shorn, which is unlikely to change the overall gross margin due to wool income covering the cost of shearing in many cases.