Economic modelling points to $660 million opportunity for WA sheep industry

The WA sheep industry’s future will not be shaped by one single intervention – and producers are in the driver's seat to make these changes.

New economic modelling underpinning the WA Roadmap to 2028 suggests full gains will rely on flock rebuilding and genetics through to processing capacity, market demand and farm profitability.

According to the report, the industry could generate up to 42 per cent more value - equivalent to an additional $660 million over five years - if a series of targeted actions are aggressively pursued in combination. These actions are ambitious but achievable given where the industry is at today.

For an average WA sheep farm, if all of these actions were achieved, this would translate to an estimated increase in cash income of around $100,000 annually, highlighting the scale of opportunity available as part of an investigation of possibilities.

This modelling, undertaken by Rennie Advisory, examined the full WA sheep industry value chain, from farm-level production through processing to the end-consumer, covering wool, meat and other sheep products.

Rather than focusing on a single “silver bullet”, the analysis tested the combined impact of multiple interventions including flock rebuilding, expanded on-farm finishing capacity and ongoing genetic improvement.

The findings suggest the WA sheep industry has now likely stabilised in terms of both flock size and overall value generation after several years of uncertainty and structural adjustment.

However, the modelling also found that this baseline represents a starting point rather than a ceiling.

Importantly, this economic analysis is designed to test what could be possible under different industry settings and investment decisions. It is not a forecast.

This modelling and analysis have directly informed the WA Roadmap to 2028 recommendations and priority actions, helping identify where investment and industry focus may deliver the greatest long-term returns.