Micron premiums and their role in Merino breeding programs

Micron premiums (MP) are an appropriate means of incorporating drivers of the value of fine wool into Merino breeding programs. Changes in the relative value of wool to meat since 2003 resulted in significant changes in Merino breeding objectives and the demographics of the Australian sheep flock. Over the same period, the average MP for fine wool (< 19 microns) have been greater than 10% regardless of the variation in the Eastern Market Indicator and an increased proportion of fine wool in the Australian clip. However, due to high heritability of fibre diameter (FD) MERINOSELECT indexes are adjusted to reflect a reduced MP to produce more balanced indexes. While individual Merino breeders can increase the emphasis they place on FD when making ram selection and purchase decisions, MPs are not routinely reported making it problematic for Merino breeders to balance the value of focussing on genetic gain in FD and the suitability of MERINOSELECT indexes in meeting their flock’s breeding objective.