New gross margin calculations have shown that prime lamb production and replacement purchases emerged as the top-performing sheep enterprises of 2024, demonstrating resilience in a dynamic industry.

According to recent analysis from the NSW Department of Primary Industries and Regional Development (NSW DPIRD), economic returns for 20-micron ewe and 1st Cross Eweenterprises—both joined with terminal rams—have increased by five percent from 2022.

Returns from the 20-micron ewe achieved a gross margin of $32.09 per Dry Sheep Equivalent (DSE), while the 1st Cross Ewe saw returns of $27.46 per DSE.

NSW DPIRD Sheep Development Officer Geoff Casburn said that stable slaughter lamb values and lower replacement ewe costs contributed to their gain, with 20-micron ewe enterprises claiming the top spot for 2024, thanks to the additional income generated from Merino wool.

“The second best result was self-replacing Dorper enterprises, which had a gross margin of $28.71 per DSE. They also recorded the third-highest sheep sale income, alongside the lowest variable costs per DSE,” Mr Casburn said.

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Image credit: DSSA Member Diana Stewart