Many disadvantages but merinos worth it: Farmer

The last remaining merino sheep farm in Wanganui benefits hugely from the price certainty gained by its membership in Merino New Zealand, says co-owner Kerry Thompson.

Mr Thompson and his wife, Julie, share two Tokomaru East farms (Tirohanga and Mangaiti) with his parents, Brian and Olive Thompson. Combined they cover 1500ha, with 700ha clear for grazing and range between 100m and 400m above sea level.

The soils are acid and can contain volcanic ash. Rainfall is 1250mm a year

The land has been in the Thompson family since 1935 and the operation is called Mangaiti Merinos.

They currently run 2650 merino and 2300 perendale sheep, plus a few cattle, on a mix of very steep and easy, clear country. When their Sustainable Land Use Initiative (SLUI) farm plan is implemented, the steepest clear slopes will be converted to pine and eucalypt forest in a joint venture with Horizons Regional Council.

That will leave 300ha for a merino flock of about 2100, with as many perendales as can also be accommodated. It will be manageable by one couple. Brian, in his late 70s, will be able to semi-retire.

Merinos are funny-looking sheep. They are thin and "slabby" with softer skin and more folds and wrinkles than other breeds. They grow more slowly and succumb to weather more easily. They're harder to shear and have a reputation for getting footrot, though that's not a major problem for the Thompsons' flock. And they are notorious for low lambing percentages.

That's a lot of disadvantages, but Mr Thompson said guaranteed higher prices for their meat and wool made it all worthwhile.

"It makes a huge difference in being able to plan your business."

The Thompsons have introduced South African genetics to their flock to make the animals larger and sturdier. Lambing percentages have increased from about 70 to 115 per cent in their stud herd. Their aim is to get it to 90-100 per cent for the whole flock, while keeping the wool between 18 and 20 microns - fine and white enough to fetch a premium.

Mr Thompson said the merinos were shorn from May to July and started lambing on September 10, two weeks later than the perendales.

The Thompsons produce 60 to 70 bales a year, and nine go to New Zealand company Icebreaker, with another five to United States manufacturer SmartWool.

Merino New Zealand is a 100 per cent grower-owned co-operative, based in Christchurch. It charges members four per cent on meat and wool income, and does all their marketing.

The Thompsons' best greasy merino wool can sell for $15 a kilo - five times the price of the coarser 36 micron crossbred wool used for carpets - and averages $12 a kilo over the flock.

Merino meat has now been given the name Silere and is marketed by Silver Fern Farms. It's sold in upmarket restaurants, and fetches a premium price because it's said to be leaner and more tender and juicy.

All Merino New Zealand wool is auctioned to overseas buyers in Melbourne.

Brian Thompson took on his first 200 merinos as a Ministry of Agriculture and Forestry (MAF) trial in 1989. By the mid-1990s there were about 60 merino farms in the North Island. Now there are fewer than 12. Most merino farming is done in the South Island.