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Hall Damara Fifth National Field Day Friday 19 July 2002

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					                          Australia’s Largest Elite Genetics Supplier



                                           Newsletter

Volume 4                                                                                 May 2002

                    Hall Damara Fifth National Field Day
                           Friday 19th July 2002
The sheep industry in Australia has been in a buoyant mood with good prices for meat carcass
animals. Market indicators are that sheep prices will remain firm for the next two to three years,
with maybe some downward adjustment towards the latter end of cycle. Over the last 20 years
sheep meat prices have been a key factor for returns in the sheep industry in Australia.

What is happening at Hall Damara:

Preparations for the field day are in motion, organising industry guest speakers and information
that will assist producers and illustrate where the industry is heading in the future. We will have
a guest speaker from South Africa, a leader in the sheep meat industry there. There will also be
a fashion parade and lunch will be served specialising in the quality Damara meat.

Over the last 12 months it has been a challenging time and Hall Damara has been meeting
demand with only limited reserves of rams left. The Damara Accord has continued to make
inroads. Even in May rams are leased out to producers who have seen the value of not running
empty ewes in their farming enterprise. Producers are seeing the true issues of what profitability
drivers are in making returns all year round in secure markets around the world.

Damara numbers are growing particularly in Western Australia and South Australia. A lot of
scepticism has abated, growers are getting the profitability, reduced management, and realising
its more than just a breed of ram but rather delivering to markets what consumers demand, that
has options in the future. Damaras to the sheep industry are what Brahmans are to the cattle
industry. Fat tail sheep in Western Australia will soon be 10% of the total sheep industry: a very
good result in such a small space of time.

Markets

Principally the Middle East has been our strongest market with livestock and shipping
companies actively pursuing the purchase of Damaras. Forward contracts are now starting to
emerge for later this year: Starting at $60 base price with a $10 premium for F1 ram lambs for
the Muslim festivals, also ewe prices for the Middle East are $65. These prices have been very
encouraging and Mexico and North America look set to be markets for the future once the
Mexican market is completely developed.

                                                 Page 1
           PO Box 18, Narembeen, Western Australia 6369       Website: www.halldamara.com.au
Telephone: (08) 9064 7276         Facsimile: (08) 9064 7011              Email: info@halldamara.com.au
Hall Damara has sent a shipment of some 6,500 Damara and Damara crosses to Mexico where
they are thriving. This shipment is the flagship for the industry in Mexico and consisted of elite
quality Pure-Bred Damara Rams and Ewes along with Damara F1, F2, F3, F4. The Mexicans
are convinced more than ever that this breed of sheep is ideally suited to their country.

 In Mexico there are about 3 million sheep, principally the Pelebuey, a hair breed of sheep with
a thin tail and 20 kilos lighter than a Damara or Merino. The problem with this breed is it takes
an 8 week intensive feeding regime to get them up to the 35kg weight for the market place.
There are other breeds, Santa Cruz and Black Belly Barbados, and there has been some
crossing of Dorpers over the Pelbuey, to make a better carcass shape. The Damara sheep, with
its herding instinct and grazing habits, will be better able to perform in the Mexican environment
than existing breeds.

We know that we can get into other markets around the world. In the Middle East and parts of
South East Asia the Islam religion is one of the fastest growing religions and it is symbolic for
them to slaughter a fat tail sheep during the year. In North America there are also large
numbers of Muslims. We have to build up more numbers to be able to develop and feed these
markets consistently.

We have a very exciting road ahead and it is important that we remain focussed and continue
looking at other markets and adding value to the production we create in the future. This is part
of Hall Damara’s vision and we will continue to develop with innovation.

We need to focus on our industry to position ourselves in the world market so that we are
producing more of what the consumer demands to achieve premiums and become leaders in
our industry.

We invite you to our field day and believe that you will receive a lot of useful information to help
you generate more profit in your sheep meat enterprise across Australia.

I hope the season is treating you well.

With best wishes.

Regards,




JOHN H HALL




                                                 Page 2
           PO Box 18, Narembeen, Western Australia 6369       Website: www.halldamara.com.au
Telephone: (08) 9064 7276         Facsimile: (08) 9064 7011              Email: info@halldamara.com.au

				
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