Labour: The Achilles Heel for Agriculture

September, 2022

Labour shortages are affecting every sector of the Australian economy. From McDonald’s offering a thousand-dollar sign-on fee, to business leaders pleading with the government for improved work visas and migration policies, it’s clear there aren’t enough workers to go around.

The sheep industry is no exception – every link in its supply chain faces chronic labour shortages, from restaurant staff to truck drivers to abattoir workers and shearers. This could become a serious challenge for agriculture in the short to medium term. Meanwhile, sheep operations continue to grow more intensive, with modern management practices adding even more tasks. It’s worth noting that the average Australian sheep farmer is now 64 years old.

By contrast, cropping operations are trending toward higher efficiency, thanks to rapid technology adoption. This has led to fewer labour requirements per hectare. Beef, another major competitor for land, has also made significant changes to reduce labour, with many businesses now running 1,000 cows per worker.

Sheep production needs to adapt by doing more with less: using less feed (through higher stocking rates) and relying on less labour. Two decades of selecting for lower-labour sheep is paying off, and the rising market share of Primeline Maternal sheep reflects their easier management requirements. The move toward shedding sheep aims to further reduce labour demands.

In my view, the future of the sheep industry will be heavily influenced by labour availability, and we’re already seeing its impact on the flock. Simple, low-cost sheep systems consistently come out on top. We remain focused on decreasing the labour needs of our lamb systems to stay competitive and sustainable in this evolving landscape.