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RESEARCH ARTICLE
Contents Vol 50(6)

Gross margins in Australian mohair enterprises and relationships with farm inputs, productivity and mohair quality

B. A. McGregor A B D and W. D. English C
+ Author Affiliations
- Author Affiliations

A 103 Mitchell Street, Brunswick, Vic. 3056, Australia.

B Present address: Centre for Material and Fibre Innovation, Deakin University, Geelong, Vic. 3217, Australia.

C Department of Primary Industries, Ellinbank, Vic. 3821, Australia.

D Corresponding author. Email: bruce.mcgregor@deakin.edu.au

Animal Production Science 50(6) 573-580 https://doi.org/10.1071/AN09224
Submitted: 17 December 2009  Accepted: 14 April 2010   Published: 11 June 2010

Abstract

In the absence of financial information on Australian mohair enterprises we aimed to determine the gross margins (per dry sheep equivalent, DSE) and their relationships with farm inputs, productivity and mohair quality in Australian mohair enterprises. Using established Victorian Farm and Sheep Monitor Project protocols we collected data for the financial years 2004–05, 2005–06 and 2006–07 from farmers in south-eastern Australia and made comparisons with data from wool enterprises of similar farm area. Over 3 years the financial returns from mohair exceeded that from wool in terms of $/DSE ($23.0 v. 11.3) and $/ha ($132 v. $116). This result was achieved despite the mohair enterprises grazing their goats far less intensively compared with the grazing intensity of sheep (5.9 v. 10.3–11.1 DSE/ha) and by using far less phosphate fertiliser than used in the wool enterprises (2.2 v. 4.6–6.1 kg P/ha). These differences were counterbalanced by higher prices for mohair compared with fine wool ($13.15/kg v. $8.35/kg clean fibre). Gross margin for the mohair enterprise did not increase as stocking rate increased. Income from mohair sales declined as the proportion of does in the flock increased. Increasing the proportion of does in the flock was associated with a decline in the average price of mohair ($16/kg greasy at 42% does to $8/kg greasy at 83% does in the flock). This decline was closely associated with the increasing proportion of the total amount of mohair coarser than 34.0 µm (either fine hair or hair) plus stained mohair. The variation in profitability between farms indicates significant scope for many mohair enterprises to increase profit. A focus on producing finer quality mohair will increase mohair profitability.

Additional keywords: benchmarking, farm management, wool production.


Acknowledgements

The Rural Industries Research and Development Corporation funded the project. We are indebted to the mohair producers who participated. National Mohair Pool P/L., Australian Mohair Marketing Organisation Ltd, Australian Mohair Trading P/L, The Australian Goat Report and Mohair Australia assisted in establishing the project. Ms Helen Quinn, Victorian Department of Primary Industries facilitated the financial analyses.


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