HIGH prices for producers has been the only positive to come out of the record low national sheep flock, but latest figures indicate that producers may have begun to rebuild their flocks.
Agriculture and Food Department (DAFWA) senior researcher Kimbal Curtis said with turnoff exceeding production in recent years, the current situation was inevitable, but it's not all bad news.
Mr Curtis said in the period from January to November 2009, slaughter and live export rates were down on the previous year, which was not simply a reflection of less numbers available to processors and live exporters.
"Turnoff has exceeded production for a number of years, which eventually had to hit a point where this happened, an equilibrium," Mr Curtis said.
"That has been driving the flock down but for this year, slaughter numbers are massively down on the previous year.
"There were 34 per cent less sheep and 9pc less lambs slaughtered in the period from January to November 2009.
"From January to September 2009, sheep sent to live export were down by 22pc.
"The year started 10-12pc down to begin with, but there were still a lot less animals slaughtered and sent to live export which is an indication that producers are retaining sheep."
In financial year terms from July to November 2009, Mr Curtis said the number of sheep slaughtered had declined by 29pc, with lambs down a massive 26pc and live exports down by 39pc.
He said the figures reflected more than just a change in the overall flock, but indicated a restructure of the sheep industry in WA.
Mr Curtis said there had been an increase in the emphasis on turning off prime lambs, with the lamb turnoff only down 9pc in the period from January to November 2009, and joining more ewes to terminal sires.
He said the flock had a very high proportion of ewes which placed the industry in the position to produce more lambs.
"We have moved away from the traditional wether dominance," he said.
"But WA is still a Merino dominant flock, the introduction of prime lamb production through terminal sires hasn't changed that.
"The lamb side of things has actually been more resilient than I first thought.
"So there is flock rebuilding but that squeezes processors."
One of the things that sets the WA sheep industry apart from the eastern states is the traditionally high proportion of the flock which goes to the live export industry, which has placed extra pressure on the state flock.
However, Mr Curtis said more sheep were being taken from the east for live export than in previous years, which indicated that demand could not be met in WA.
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