Building certainty: WA explores contracts and data to strengthen sector

Sharper insights from improved data collection and usage might just be the game-changer WA’s sheep industry has been waiting for.

That was the clear message from producers, processors and supply-chain leaders who gathered in Perth recently to explore how WA can move beyond seasonal volatility and start doing business with more confidence, clarity and collaboration.

Producers at the roundtable drew comparisons with the grain sector, calling for improved on farm and supply chain data to inform decision-making, more use of expert advice and standardised contract terms, forward contracts, base-price models and financial tools - even swaps - to help smooth the highs and lows. 

Processors were cautious about long-term pricing, but open to exploring models to spread risk more evenly between the farmgate and abattoir.

Central to the discussion was how WA’s sheep industry supply chain operates in a largely transactional manner, shaped by seasonal volatility and fragmented relationships.

The group backed a shift toward longer-term supply relationships and pathways that reward consistency, not just spot-market wins.

As part of this, better data literacy across producers, agents and advisors was flagged as essential to improving profitability and reducing risk.

Showcasing successful data-driven sheep enterprises was a suggestion from the workshop to help shift perceptions of the industry - vital for attracting and retaining the next generation of producers.