THE question at Hay last week as young Merino ewes sold for $200-plus, was how long it would take to cover the purchase price.
The long-held rule of thumb has been that, to be a good investment, the cost of a young replacement ewe should be covered within 12 months from the sale of an old mutton ewe, a fleece of wool and a lamb.
Some agents suggested ewes sold at Hay would require up to three good seasons of trading before the purchaser profited.
And there was plenty of wise-cracking amid the serious debate.
The most laconic line had to go to Bill Rollins, when asked what he thought of his son Bruce paying up to $240 for 600 maiden Merino ewes.
"I nearly died of shock," Bill said. "I won't get any money now for about six years . . ."
The Rollins, like many other purchasers who paid top ewe prices at Hay, work as specialist first-cross breeders whose ewe lambs attract good money. Earlier this month at Temora, their annual drop of first-cross ewe lambs sold to $192.
But the producer best positioned to talk about figures from high-priced sheep was Keith Berryman, of Manorbar at Moama, who last year paid the record price of $237 for young Merino ewes at Hay.
It was a purchase that, as he said, had chins wagging about "how silly and stupid we were paying that sort of money".
Yet 12 months on, it has proved a sound investment, with the first draft of first-cross wether lambs bred from the ewes selling for $156 a head last week.
Ewe lambs will feature in the Bendigo special store sale in November, where based on sales so far this season, they will likely sell for more than $200.
Conservatively, those $237 ewes could have produced lambs worth an average $180-plus in their first year, as well as a wool clip of $50 - covering the purchase price.
Then there was mutton values. Mr Berryman said they recently sold old ewes for "just under $100 a head on a down market".
This shows the lamb and sheep industry has been generating good money for those trading at the top end and it was those producers buying at Hay last week.
The September sheep sale at Hay, arguably the best Merino market for the season, is the domain of the producer who has established breeding programs and prices reflect this.
So while the sale may have broken records, prices need to be viewed in the context of ewe quality and cash-flow many buyers have to support such an investment.
