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

McGregor, B. A. and English, W. D 2010, Gross margins in Australian mohair enterprises and relationships with farm inputs, productivity and mohair quality, Animal production science, vol. 50, no. 6, pp. 573-580.

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Title Gross margins in Australian mohair enterprises and relationships with farm inputs, productivity and mohair quality
Author(s) McGregor, B. A.
English, W. D
Journal name Animal production science
Volume number 50
Issue number 6
Start page 573
End page 580
Total pages 8
Publisher CSIRO Publishing
Place of publication Collingwood, Vic.
Publication date 2010-06-11
ISSN 1836-0939
1836-5787
Keyword(s) benchmarking
farm management
wool production
Summary 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 200405, 200506 and 200607 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. 10.311.1 DSE/ha) and by using far less phosphate fertiliser than used in the wool enterprises (2.2 v. 4.66.1 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.
Language eng
Field of Research 140201 Agricultural Economics
Socio Economic Objective 830304 Goats
HERDC Research category C1.1 Refereed article in a scholarly journal
HERDC collection year 2010
Copyright notice ©2010, CSIRO
Persistent URL http://hdl.handle.net/10536/DRO/DU:30032703

Document type: Journal Article
Collection: Centre for Material and Fibre Innovation
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