NSW DPI sheep and wool livestock officer Geoff Casburn says small improvements in enterprise performance can deliver huge benefits to producers recovering from drought.

Experience has shown that small improvements in meat and wool production can boost enterprise performance and make a big contribution to drought recovery.

NSW DPI livestock officer, Geoff Casburn, reported in last December’s Agriculture Today that sheep and wool producers can greatly improve cash-flow with just a five dollar boost per dry sheep equivalent (DSE) to their gross margin.

"If producers can increase gross margins to around $21 per DSE, they can double the amount of money available for servicing debt, which in some cases almost triples the level of debt the business can handle," Mr Casburn said.

"Selecting better performing rams is one way to enhance their gross margin.

"Meat rams with estimated breeding values in the top 20 per cent can increase gross margin by about two dollars per DSE.

"Turning-off lambs earlier can easily reduce supplementary feed costs by three dollars per lamb and increase the gross margin another $1.50 per DSE."

According to Mr Casburn a 10pc increase in the reproduction rate will add a further three dollars per DSE.

"If the benefits from improved genetics and reproduction are added together, they come to $6.50 per DSE," he said.

"Fixed (overhead) costs not included in gross margin calculations can be about $100 per hectare or $10 per DSE, so a flock with a low gross margin of $16 per DSE might have six dollars per DSE available for servicing debt.

"But if the gross margin is increased to $22.50, the amount available for servicing debt is more than doubled, from six dollars to $12.50 per DSE."

Mr Casburn said the same principles apply to wool enterprises.

"For wool producers, an increase in clean fleece weight of 0.5 kilograms per head of 21 micron wool, can potentially increase gross margins by $1.50 per DSE.

"All grazing enterprises need to closely match animal production systems with pasture production systems, which ultimately means matching lambing with the period of most reliable pasture growth.

"The aim is to run as many stock as possible at the lowest cost while maximising sale values, which is usually best done by more efficient use of pasture.

"A 25 pc increase in stocking rate from 10 to 12.5 DSE per hectare could equate with an extra four dollars profit per DSE.

Making More From Sheep workshops which offer producers more information about selecting better rams, reproduction, and more efficient use of pastures are being run throughout NSW.

Contact the AWI Helpline, 1800 070 099 or the MLA membership line, 1800 675 717 or the program website, www.makingmorefromsheep.com.au