Making bank: How Aussie shearing rates rank against the rest of the world

While the pastoral award recommends a rate of $3.67 per sheep or a day rate of $274.85, it has been more typical for shearers to be paid above the award rate, with rates reaching $4 to $5 a sheep in recent times due to labour challenges.

Shearing Contractors Association of Australia secretary Jason Letchford said he had heard recent reports of rates from $3.80 into the $4 range.

"A lot of the Riverina is on $5," he said.

Mr Letchford said rates were starting to ease back from recent highs though, with many shearing contractors hesitant however to bump up their current rates too much when the new financial year begins, given the increased availability of wool harvesting labour.

"The trend line is we will see some New Zealanders and overseas workers arriving and if they're sitting around twiddling their thumbs, they're more likely to step in and start discounting the price more readily," he said.

"We only need to see a dry spell with flock numbers not holding those recent highs of 73 million sheep... we've done a great job enticing new entrants to the market and we're nervous... those young workers will be a victim of where shearing supply numbers increase and farmers will benefit from that.

"The happy balance is my sweet spot... farmers want to drive down the cost of production and we respect that."

At a rate of $4 a sheep, a shearer meeting the target set by wool harvesting trainers of 120 sheep a day, would earn $480 a day, which would add up to $2400 in a week.

Mr Letchford said he knew of one gun shearer shearing 200 sheep a day at $5 a sheep to earn $1000 a day.

"He's not making less than that a day, except when he's not working and that's the seasonality of the job... part days and part weeks and rain here and there, that's the only inhibiting thing from him making $5000 a week," he said.

"But around 120 sheep a day is where we want shearers to be, more than caring about someone shearing 200 sheep a day... that's elite, that's SportShear, that's a great pub conversation... but my energy and Australian Wool Innovation's energy in terms of resources is that we want them to earn that $500 to $600 a day."

Meanwhile in New Zealand it's common to earn from $2.15NZD for lambs, $2.30NZD for ewes and from $3.60 to $4NZD for Merinos.

In Australian dollar terms, that means shearers are earning between $1.97 and $3.66 per sheep.

Thee New Zealand Shearing Contractors Association lifted rates in 2022, recommending boosts of 6.91 per cent for crossbreeds and 12.38pc for Merino, half breeds and quarter breeds shearing.

NZSCA executive officer Phil Holden said the association makes recommendations, with individual contractors then making their own decisions around rates.

"The lift in the recommended levels put NZ contractors on a per with Australian contractors in terms for what they could consider paying their shearers and wool handlers, so it made it much more competitive, " he said.

"I think Covid also changed the desire for people to travel as much as previously.

"So, NZ shearers can earn well here in NZ, be close to their families and stay in an environment they know. "

Meanwhile Australian shearers have reported earning 1.80 Euros in Italy and £1.60 per sheep in the UK, or roughly $3 in both countries.

Irish rates are similar to in Australia, with reports in recent years placing shearing costs at about 3 Euros per sheep, or in Australian terms $4.92 a sheep.

Rates vary in the USA, but it's common to receive $3USD a sheep, or about $4.60 in Australian dollars.

In Chile, where the season coincides with Australia's peak season, contractors are earning $1.50 to $2USD a head including pressing, or equivalent to $2.30 to $3 in Australian dollars.

Woolbroker and Australian Wool Innovation director Don Macdonald said in Chile the classer is also paid separately at a daily rate of $100USD.

"To be roughly a quarter of what our costs are puts in perspective the load that the Australian woolgrower is carrying... because our wool prices are not four times higher than theirs, that's for sure," he said.

"It shows where wool prices need to be.

"We've got to do better than a third of your gross revenue going into just getting it in the bale and that's what it is at the moment for the average woolgrower.

"But the only thing that's going broaden that gap, bringing 30 per cent of gross income back to say 20pc will be consumer spending and that's some way down the track just yet globally."

Mr Macdonald said it was clear that Australian shearing rates were internationally competitive and shearers heading overseas were doing so for adventure rather than to chase higher rates.

"Even the UK shearers that have been out here, they're getting paid a lot more than they would in England or Wales," he said.

"There's every reason for them to want to come here.

"A lot has changed in the last couple of months... the dynamics of what's happening in Western Australia is certainly taking the pressure off.

"There are contractors advertising and promoting themselves trying to look for work."