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Other On-Station Activities For Wool Pastoralists, Mark Stevens

Journal of the Department of Agriculture, Western Australia, Series 4

The impact of low wool prices has been most severe on specialist wool growers who have little scope for diversification, particularly those in the pastoral area.

Although there are limited opportunities for new enterprises on all pastoral stations, individual pastoralists are examining other on-station activities to determine which ones might be suitable. In doing so, they are evaluating:

• location (proximity to a major highway or population centre);

• natural attractions (coast, gorges, river, wildflowers);

• natural resources (native fauna and flora); and

• water supply (quantity and reliability of good quality water).

Tough Times Call For A Review Of Farm Business Performance, Martin Van Bueren, John Young

Journal of the Department of Agriculture, Western Australia, Series 4

Most Australian farm businesses specialising in wool production are operating at a loss at current wool prices. After both short term operating and long term costs of capital depreciation are accounted for, only a small number of wool growers are able to make a profit with the wool market indicator below 500c/kg.

Poor prices have stimulated wool growers to review their operations and look to ways of improving cash flow in the short term, such as diversifying into cropping. The downturn should also prompt growers to address the longer term trends of declining terms of trade and historically poor productivity …