Drought impacts South Australia's wool industry leaving shearers without work
Shearers are struggling to find work as Australian wool production falls to its lowest in more than a century.
Steep falls in wool production and sheep numbers in drought-affected South Australia have forced shearers to look interstate and overseas for work, or consider leaving the industry.
Naracoorte farmer Paul Oster said he had seen the wool industry from many angles as a grower, shearer, trainer and shearing contractor, and the drought and increasing costs were impacting all involved.
"It has a rippling effect through everyone's business livelihood, their family livelihood, community livelihood … it's of great concern," Mr Oster said.
Mr Oster is worried good workers are turning away from the industry due to the lack of opportunities.
He said well-organised shearers could once keep themselves busy enough through the year to make ends meet, but options had become limited.
"We have such a high-performing level of staff right now that are unfortunately questioning, 'Where is our future?'" Mr Oster said.
Shearing Contractors' Association of Australia shearer woolhandler training executive officer Glenn Haynes was also concerned.
"I honestly think we are going to lose around 20 per cent of our workforce in South Australia," he said.
Mr Haynes said he was putting on extra training sessions in 2023 to help fill a shortage of workers in the industry.
He said the shortage had since turned into an excess.
"We've still got a lot of young people wanting to get into the industry … but it's having a job on the other end of it."
While those looking for work would usually go interstate, he said the opportunities were not there either.
"The trouble is you have the majority of Victoria in a similar situation and a lot of NSW in the same situation, and then the floods in Queensland, and Tasmania is just full," Mr Haynes said.
"WA's sheep numbers have dropped dramatically over the last 12 months … so we have a lot of Western Australians ringing looking for work as well.
"There's a lot of guys and girls out there that are just … going to have to travel [overseas for work] this year."
The Australian Wool Forecasting Committee expects the nation's wool production to decline almost 12 per cent this year compared to last.
It has forecast a further 8.4 per cent drop in the coming financial year.
The estimated wool production for 2025-26 is 256.6 million kilograms, which would be the lowest recorded level since the early 1900s.
In SA and WA, this year's clip is forecast to fall 18.4 per cent.
Australian Wool Network SA manager Rod Miller said many producers had reduced their flock due to the ongoing drought.
"The excessive, long feeding cost is the proverbial straw breaking this camel's back," Mr Miller said.
"The drought will finish one day, but we're going into the second year now and if you're feeding out sheep over 14 months continually, it's a real Groundhog Day for a lot of these producers.
"With higher input costs and include shearing as well, and the feed costs, it's just soaking up all the profit margin and taking a lot of the fun out of it."
Mr Miller said SA was feeding an oversupply of drought-affected wool into a market of low global demand.
While people in the wool industry agree times are dire, those who have stuck with it believed it could bounce back once rain returns.
Sandy Martin, who operates Baratta Station in SA's mid-north, said he had ridden the ups and downs of the sheep industry for the past 45 years.
"In the last 10 years, we've had three years of drought, two years of COVID, two years of low commodity prices, and we're still in business," he said.
"Actually, we've had a lovely year at Baratta and our sheep and wool production has been above-average, and our farming country at Jamestown is just hanging in there.
"If we get rain, we'll get back on track pretty quickly.
"If it all comes together, it's a bloody beautiful industry — I couldn't think of anything better."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Telegraph
16 minutes ago
- Daily Telegraph
NSW Budget: $835m for Aerotropolis infrastructure
Don't miss out on the headlines from NSW. Followed categories will be added to My News. The biggest fire station in Western Sydney, upgraded roads and new stormwater infrastructure will be major headline acts in next week's NSW Budget, as the Minns government injects more than $835 million into infrastructure in the Aerotropolis to support the new Western Sydney Airport. The investment package will include more than $150 million for upgrades to local roads across the Aerotropolis. More than 1000 green direction signs will be installed across Sydney to direct traffic to the area, along with new traffic lights and signals at the Elizabeth Drive and Luddenham Road intersection. The money will also go to planning three key routes along Devonshire Road, Devonshire Link Road and the Bradfield Metro Link Road. The new money will bring the total allocated in the upcoming budget to Aerotropolis road projects over four years to $2.7 billion, which is jointly funded with the Federal government. Renders of the new Badgerys Creek fire station. Picture: supplied Roads Minister Jenny Aitchison said the new road funding focused on the 'must-have priorities' to get the road network ready for the opening of the new airport. 'New and widened roads, intersections, safety upgrades – that will bust congestion in this growing area,' she said. The budget will also include $42.2 million to finish the Badgerys Creek fire station, which will be constructed on Adams Road in Luddenham, and will be the largest in Western Sydney when complete. The funding brings the total cost of the station to $57.6 million, including the recruiting of 52 new firefighters for the 24 hour station. The now completed Western Sydney International Airport Terminal. Picture: NewsWire Handout via WSIA Fire and Rescue NSW commissioner Jeremy Fewtrell said the position of the new station is designed to allow crews to easily respond to fires at the new airport when it opens towards the end of next year. 'The fire station's proximity to the airport means it can immediately respond and support aviation firefighters in any emergency,' he said. 'It's also a reflection of our ongoing commitment to firefighter wellbeing through modern design and safety-focused infrastructure.' Jeremy Fewtrell, the Fire and Rescue NSW Commissioner, said the position of the new station is designed to allow crews to easily respond to fires at the new airport when it opens towards the end of next year. Picture: NewsWire / Damian Shaw Construction on the station will begin later this year, to be completed by the end of 2026. State-owned utility provider Sydney Water will also fund an additional $644 million in stormwater and recycled water infrastructure for the Aerotropolis, designed to service the 1,020-hectare Mamre Road industrial precinct, and kick-start water connections for 7,267 hectares of industrial land around the new Western Sydney Airport. Premier Chris Minns said enabling infrastructure in the Aerotropolis was critical. Photo: NewsWire/ Gaye Gerard The funding will prioritise the building of naturalised channels and waterways instead of concrete pipes and drains in the area. It will also fund land acquisition for the development of new wetlands for the purposes of stormwater capture and harvesting. The $644 million was largely funded by infrastructure contribution fees paid by property developers with projects on the Mamre Road precinct. Premier Chris Minns said funding the enabling infrastructure was critical to unlocking 'the full potential of the Aerotropolis'. 'With billions of dollars now committed, we're not just talking about building a new airport—we're creating a connected, thriving region that will deliver jobs, homes and opportunity for generations to come,' he said.
ABC News
33 minutes ago
- ABC News
Australian government negotiates deal for Darwin Port as Landbridge defends lease
Out at the Darwin Port, the Australian boss of embattled Chinese-owned firm Landbridge pushes back against "myths and mistruths" he says his company has faced for a decade. From accusations of sinister links to China's People's Liberation Army (PLA), to warnings of influence exerted from within the nation's ruling Chinese Community Party. Landbridge Group, the company that holds a 99-year lease on the northern Australian port, granted 7.30 rare access to visit the facility that's now in the crosshairs of a geopolitical debate. The company's non-executive director for Australia, Terry O'Connor, attests they've been targeted by lies, aimed at firming up a narrative that the Port of Darwin leaseholders needed to be ousted. "We've seen a bit of hysteria around the fact that it's owned by a private Chinese individual [billionaire Ye Cheng]," Mr O'Connor said. "There's been many myths about the ownership process. "One that continues to amuse me is the perception that we're somehow connected with the People's Liberation Army in China — we're not. "If there's any alliance, our alliance is with the Australian military more than anybody else, let alone the PLA." Mr O'Connor has blamed political agendas in Canberra for fuelling the rhetoric. He took aim at recent commentary by Deputy Prime Minister Richard Marles, who late last month erroneously described Landbridge as a "Chinese government-controlled entity". It comes as the Albanese government moves to fulfil its federal election promise to get the Darwin Port lease "back under Australian control". He said Mr Ye's connections to the Chinese government were standard for business leaders in China. "I don't think there's any doubt he is connected with the Chinese party given his position in the Chinese business world, he certainly has connections within the Chinese government," he said. "[But] does that influence what happens here at the port on a day-to-day basis, a month-to-month basis, or a year-to-year basis? "The answer is no." Despite Mr O'Connor's defence of his company, Landbridge's days with the port may be numbered. The Australian government is working behind the scenes to find a buyer and strip the Darwin Port lease from Landbridge, and according to federal sources, it may happen sooner rather than later. Federal Infrastructure Minister Catherine King declined an interview on the matter, as the government negotiates with private companies interested in taking over the lease. For the first time, Landbridge has indicated it would be open to discussions around selling the asset. "We haven't investigated what a right price is, to be honest," Mr O'Connor said. If a buyer isn't found, the government has indicated it would be open to compulsorily acquiring the lease, which would likely cost taxpayers hundreds of millions of dollars. The government's election promise was made 10 years after Landbridge won the port lease from the Northern Territory government in a competitive tender process, in 2015. Since then, the deal has been a magnet for national security debate, most pointedly after concerns were raised by then-US president Barack Obama to Australia's then-prime minister, Malcolm Turnbull. Despite the controversy, there's been two federal reviews, a parliamentary inquiry and public statements made by ASIO — none of which have made public findings of a security threat. Darwin-based defence expert Victor Abramowicz described the recent election promise as "national security chest-beating". However, he acknowledged that icy relations between Australia and China had likely been a factor in the decision, including instances earlier this year where Chinese warships entered Australian waters. "Beijing certainly hasn't done itself any favours," he said. "They put sanctions on Australian barley and wine and meat … they then sent the ships around. "This was all quite tertiary, it wasn't directly related to the port. Chinese Ambassador to Australia Xiao Qian declined an interview request for this story, but he's previously said any move to take back the Darwin Port lease would be "ethically questionable". The Albanese government hasn't said which companies are in the running to take over the port. But a number are said to be circling the facility. A joint bid is believed to be in the works between freighting giant Toll Group and US private equity firm Cerberus Capital Management, which has strong links to the Trump administration. Toll Group declined to confirm the matter, and Cerberus did not respond to 7.30's request for comment. The government has also said it's speaking with superannuation firms over the asset's future. In a statement, the infrastructure minister said the government would "work through proposals in a manner consistent with our approach to any proposed foreign investment in Australia". "[We are] working closely with the Northern Territory government on next steps," Ms King said. The NT's Labor Opposition Leader, Selena Uibo, said the current uncertainty surrounding the port's future was creating a similar situation to the one seen in 2015. NT Treasurer Bill Yan said the port's future was "ultimately a matter for the federal government". "As the landholder of Darwin Port, we continue to work with the Commonwealth in good faith to ensure that national interests are upheld," he said.
ABC News
33 minutes ago
- ABC News
Qantas gears up for a price war with rivals Virgin and Air New Zealand
The airline pendulum once again is about to swing. After a golden run for Qantas investors in the past 18 months following the unceremonious exit of Alan Joyce, it appears the Flying Kangaroo is now gearing up for a major onslaught against its competitors. That means, for a brief time at least, travellers are likely to reap the rewards of what is poised to be a three-way tussle to attract domestic and trans-Tasman travellers, and those looking towards Asian havens. Qantas, Air New Zealand and a rejuvenated Virgin Australia have already begun putting the pieces into play, for what is shaping up to be a torrid summer of competition as each attempt to grab new, and defend, existing market share. The aggressor is Qantas. A fortnight ago, it announced a 20 per cent lift in trans-Tasman flights over summer — that equates to around 60,000 additional seats for December and January. According to aviation expert Neil Hansford, it isn't just the Tasman where Qantas is expanding. Capacity is increasing in flights to Singapore, Bali and down Australia's east coast. "They're now operating directly from Hobart and Newcastle to Perth, and they're operating from Newcastle now to Bali," he told ABC News. "They're using their equipment very well to be able to provide services and it's getting more and more convenient for [consumers]." Call it a coincidence, but in the next six weeks, Virgin Australia will relist on the Australian Securities Exchange. And suddenly, the pressure is on. Last week Qantas pulled the pin on its Singapore-based Jetstar Asia offshoot, which will deliver an extra 13 aircraft into the domestic market. Established almost 20 years ago, it was part of a move to push the Jetstar strategy through the region, with independent operations in Singapore, Vietnam and Japan. In recent times, Jetstar Asia has become victim to intense competition from Air Asia and Singapore Airline's budget offshoot Scoot, racking up losses and soaking up resources. Deploying those jets to the domestic, trans-Tasman and holiday markets like Bali will put a newly listed Virgin under pressure, forcing it to offer more seats at lower prices to retain market share. That's good for consumers but ultimately will restrict the airline's earnings growth. According to Mr Hansford, the extra seats will tip the balance towards consumers as pricing becomes "more competitive". "If you put on the capacity, you will fill it," he said, noting the flip side scenario would be restricting capacity to drive prices higher. The rush to more seats ultimately could restrict earnings growth and profits for Qantas, Virgin and Air New Zealand shareholders. The stars aligned for Virgin's owners in the past year. The collapse of Rex and brief upstart Bonza reduced airline competition just as consumers began returning to the skies. Virgin, which struggled for more than a decade to turn a profit before its collapse five years ago, has seen a huge financial turnaround. It abandoned international routes, concentrating on major domestic and holiday destinations. Finally, after missing a brief window of opportunity last year, American private equity group Bain Capital decided the time was ripe to offload a 35 per cent stake in the airline to the public. It already had sold a 25 per cent stake to the well-heeled, state owned Middle Eastern carrier Qatar. The Doha-based airline has struck fear into Qantas management. Two years ago, Qantas successfully lobbied Canberra to restrict extra Qatar flights into Australia but is now watching with trepidation whether Qatar exerts pressure on the domestic market. Qantas has been one of the biggest beneficiaries of the airline industry turnaround. Its share price has doubled in the past 18 months, soaring to a record $10.87 close in early June on the back of lower fuel prices, reduced competition and healthy demand. Airlines are among the most volatile stocks on global markets. Hugely capital intensive, subject to the whims of consumers, fuel price variations and health scares like SARS and COVID, they oscillate between huge profits and massive losses. While Qantas appears to have hit a sweet spot in recent times, there are headwinds aplenty. Funds manager Roger Montgomery told The Business that Qantas has one of the oldest fleets amongst its peers and is facing huge costs in replacing those aircraft, that won't make much profit. "If you look at the business over the last 15 years, what you discover is that the company has lost about $110 million and that's despite the fact that debt increased substantially and that the government supported the company with about $2 billion worth of assistance," he said. The purchase of further aircraft will see those losses mount, he argued. The last time Qantas and Virgin went toe to toe in an all out war for market share, it nearly up-ended the Flying Kangaroo. A decade ago, then-chief executive Alan Joyce drew a line in the sand, declaring Qantas's share of the domestic market would never drop below 65 per cent. The two airlines sold tickets at below cost — with Virgin then backed by four major airlines, including Singapore and Etihad — and eventually Mr Joyce had to raise the white flag after Qantas plunged deeply in the red with losses approaching $3 billion. Under new Qantas boss Vanessa Hudson, that is unlikely to be repeated. Her capacity for a protracted war is constrained by the airline's desperate need to upgrade the ageing fleet left to her by her predecessor. But she clearly is moving the pieces into position to put the squeeze on the competition. That's been welcomed by the broader travel industry — cheaper flights are likely to boost tourism more generally. Flight Centre Leisure chief executive James Kavanagh has forecast passenger numbers to increase by 4 per cent in December, and by 6 per cent in January. He argued more people will travel because there's "more competition" which means "better pricing" and "more flexibility". That has also been welcomed across the Tasman. While Air New Zealand is understandably wary about the potential impact of extra seats on the route, the Kiwi travel industry is ecstatic. Daniel Painter, managing director of New Zealand travel agent Wild Kiwi, argued this kind of move could be just the tonic to restore travel to New Zealand back to pre-COVID levels. A win for travellers that might just test the patience of investors.
