Similar to Beef values, Sheep values have risen strongly, on average a 38% increase, erasing the 2024 fall in values. Increased values are on the back of strong global demand, from the UK, EU and US, even though demand in China has been weak.
Total sheep numbers continue to decline, putting pressure on processing numbers, which further tightens supply. This coupled with further land conversion continues to put pressure on the industry. High debt levels are also encouraging farmers to exit the industry in favour of land conversion, which will further limit supply and likely see further processor closures as numbers fall.
Wool markets have improved, with 8-year highs being achieved for crossbred fleece. There is also renewed optimism driven by consumer demand for natural fibres, including Government led initiatives mandating the use of wool in public infrastructure.
Shearing costs remain high relative to wool prices which continues to fuel interest in self-shedding sheep breeds.
Disclaimer: This blog has been carefully prepared, but it has been written in general terms only. The blog should not be relied upon to provide specific information without also obtaining appropriate professional advice after detailed examination of your particular situation.
