BENEFITS OF GENETIC-IMPROVEMENT TO THE MERINO WOOL INDUSTRY

The value of genetic improvement to the Merino wool industry is a function of the rate of gain achieved by ram breeding flocks and the capture of these gains by commercial producers. This paper describes a model of the likely flow of genes within the Australian Merino population and attempts to quantify the industry benefits under a range of alternative scenarios. Variation in achieved rates of gain between groups of ram breeders and variation in likelihood of changing source of flock ram purchases between groups of commercial producers were both important elements of the model, which is fully detailed in the paper. It is shown that present economic incentives for ram breeders to adopt improved breeding practices are modest in terms of the impact on flock ram market share. In order to realise the potential industry benefits from improved breeding methods, a more effective, market-driven strategy for promotion is required. Rather than attempting to coerce a higher proportion of ram breeders to adopt methods that will increase the rate of genetic gain in the absence of market incentives, more effort should be directed at increasing the mobility of flock ram buyers as a means of increasing the incentive for ram breeders to adopt superior breeding practices. The information required to achieve this outcome is briefly discussed but demands much greater attention. However, substantial investment in this strategy is possible given the potential benefits to industry that would accrue.