The Right Lamb Every Time

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1 AN INITIATIVE OF The Right Lamb Every Time Rob Davidson WAMMCO International Dave Pethick & Kelly Pearce Murdoch Uni & Sheep CRC EVENT PARTNERS: EVENT SUPPORTERS:

2 The Right Lamb Definition?? Store lamb 32 Trade wt Export wt Processor Consumer Light Export (Middle East) Lamb Feeder (Store) Lamb: Under 18kg -1mm Export (U.S.) Foodservices Lamb: 28-32kg 6-2mm Export (U.S.) Retail Lamb Domestic Foodservices Lamb: 22-28kg 6-15mm Export (E.U.) Retail/ Foodservices Lamb: DomesticTrade Lamb 18-22kg 6-15mm FS1 FS2 FS3 FS4 FS5

3 The Right Lamb Overview Grower confidence Current situation, and how did we get here? What s happening around the world? What to focus on?

4 Current situation WA drought - seasonal conditions improving Welcome season in east - rebuilding commenced A$ at record levels against US$ National sheep flock at 1-year low Unprecedented lamb and sheep prices Both domestic and export demand maintaining pace

5 After decade long drought, recovery in East The dry decade (2-29)

6 After decade long drought, recovery in East The dry decade (2-29) Recovery in 21

7 The national sheep flock 2 million head up 1.9% to 69 million head in up 5% by 215 to 71 million head March until 1999, 3 June from 2 Source: ABS

8 5 The WA sheep flock Down 15% to 12.4 million head in f Source: ABS, MLA forecasts 31 March until 1999, 3 June from 2 f = forecast

9 Interstate transfer 12 1 No. of sheep , ,16, ,288 (up to 1st July) 2 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Months

10 World flocks in decline Australia New Zealand US Argentina million head 2 flock million head 8 flock million head 6 flock millon head 6 flock Source: ABS, USDA, FAO, Statistics NZ

11 Aust. sheep flock and lamb production million sheep and lambs ' tonnes cwt 2 lamb production sheep flock Source: ABS

12 Change in Australian flock structure breeding ewes lambs rams wethers 1% 12% wethers 3% wethers 8% 6% 4% 2% 47% ewes Ewe proportion of flock 5 6% % Source: ABARE, ABS, MLA Ewe & lamb proportion of the flock to continue rising

13 Lamb production ' tonnes cwt 6 production carcase weight kg/head f 13f 15f 15 Source: ABS, MLA forecasts Carcase weights firm = 21.6kg in 211 f = forecast

14 Domestic lamb consumption ' tonnes cwt consumption retail price A /kg retail weight f 13f 15f Source: ABS, ABARE, MLA forecasts f = forecast

15 Strong export growth exports (' tonnes swt) exports % production % of production f 13f 15f Source: DAFF volumes, ABS values, MLA forecasts f = forecast

16 5 Lamb exports to the Middle East ' tonnes swt volume value A$ million 25 4 Up 14% in 211 to 41,9 tonnes (~2.1M lambs) f Source: DAFF volumes, ABS values, MLA forecasts f = forecast

17 Lamb exports to the USA ' tonnes swt volume value Up 5% to 35,9 tonnes (~1.7M lambs) A$ million f Source: DAFF volumes, ABS values, MLA forecasts f = forecast

18 What s needed grow & cut the waste More lambs - production improvement more lamb kg/ha Deliver what the customer wants hit specifications Demand & understand processor feedback Reduce defects Genetic improvement growth, muscling, lean meat yield

19 Grid specifications

20 Reduce defects

21 Reduce defects

22 Reduce defects

23 Lean meat yield Consumers don t want to buy fat and bone Increase LMY by decreasing fat and bone or increasing muscularity WAMMCO only plant in Australia to pay premium based on carcase LMY

24 LMY Carcase comp results Ave 2% drop in LMY for every increase in FS

25 Lean meat yield Fat score 2 Carcase Wt 23. $/kg $6. $/lamb $138 LMY 51.1% Lean tissue 11.75kg Outcome True value/kg $6.

26 Lean meat yield Fat score 2 Fat score 4 Carcase Wt $/kg $6. $6. $/lamb $138 $138 LMY 51.1% 47.2% Lean tissue 11.75kg 1.85kg Outcome 9g wastage (Fat & bone) True value/kg $6. $5.76

27 The power of Growth PWWT Merino Maternal Terminal 25 Hot Carcase Weight (kg) PWWT ASBV

28 PEMD Eye of shortloin weight 7 Eye of Shortloin Weight (g) g PEMD Low PEMD High Hot Standard Carcass Weight (kg)

29 PFAT Eye of shortloin weight 6 Eye of Shortloin Weight (g) g PFAT Low PFAT High Hot Standard Carcass Weight (kg)

30 Competing retail protein prices Retail price c/kg If we get it wrong they will eat chook!

31 Take home messages Lamb & sheepmeat $ to remain traditionally buoyant Need more lambs plant efficiency & market demand Attention to detail required even given high prices Focus on improving genetics growth / muscle ++ Provide consumers with the best eating experience

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