Over thirty per cent of the nation's sheep producers intend to increase their flock numbers while 60pc plan to stick with their current size.
This is according to the latest Meat and Livestock Australia (MLA) and Australian Wool Innovation (AWI) sheepmeat and wool survey results which also revealed just seven per cent are going to reduce their flocks.
The results of the February 2022 survey are a powerful tool into revealing the production activities and intentions of producers from MLA's defined sheep producing regions.
Released last week, the results also revealed the number and type of breeding ewes on hand, unveiling whether a push towards wool or meat producing breeds is on the horizon.
The survey established that of the total 42,351,464 breeding ewes on hand, 74pc are Merino, or wool producing, and 26pc are non-Merino.
MLA market information analyst Ripley Atkinson said breeding ewe numbers have jumped by 3pc year-on-year to 1.1 million extra head as the national flock growth continues.
"In turn, the significant rise in ewe numbers signals increased activity in the mutton market throughout the rest of the year," Mr Atkinson said.
The strong producer intentions are off the back of continued healthy seasonal conditions across key sheep producing states of New South Wales and Victoria as well as favourable autumn and winter rainfall for Western Australia last year.
Meanwhile, the survey also found that of the 19,487,990 lambs on hand, 56pc are pure bred Merino and 44pc are non-Merino.
Many of the Merino farms are found in northern NSW, QLD and the wheatbelt of WA whilst a majority of the non-Merino dominant farms are found in the SA, VIC and southern NSW.
In the largest increase in breeding ewes across the nation year-on-year, NSW has experienced a jump of eight per cent to 17.6 million, however there are 15,300 less lambs on hand.
In the last four months between November 2021 and February 2022, there have been 5.3 million lambs marked with most of these Merino at 63pc.
Pure meat breeds marking rates were at 16pc and first-cross at 9pc.
According to the results, there were 5.8 million ewes joined with national marking rates at 83pc for Merino breed and 99pc for non-Merino breeds.
Mr Atkinson said the expected sales in the next four months will give an indication of the future make-up of the national flock.
"Of the 8,031,561 expected sales, 32pc is forecast to be Merino, while 27pc is pure meat, 25pc first-cross and all other breeds making up 16pc," he said.
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