Australian Merino breeders have traditionally selected animals for breeding predominately on the basis of wool characteristics. Over recent decades, an increasing proportion of Merino breeders are interested in producing a ewe that can be used for prime-lamb production, but that also performs well for wool characteristics. Correlations between ultrasound carcass traits and other traits such as wool, internal parasite resistance and reproduction traits, are not very well known. The aims of this study were three-fold: (1) to estimate the genetic relationships between ultrasound carcass traits and wool, internal parasite resistance and reproduction traits, (2) to determine the value of recording ultrasound carcass traits in Merino breeding programs, and (3) to evaluate the impact of improving ewe genetic merit for fatness on their reproduction performance. Ultrasound fat and eye muscle depth had small to moderate genetic correlations with most traits, with positive correlations observed for bodyweight, fibre diameter, fibre curvature and reproduction, and negative correlations observed for fleece weight, fibre diameter coefficient of variation, worm egg count and breech wrinkle. As expected on the basis of these genetic correlations, estimated breeding values for fat depth of ewes had a positive association with their observed reproduction performance, but the effect explained only minimal variation in reproductive performance, and was extremely variable among flocks and years. A range of measurement scenarios was investigated for three standard MERINOSELECT indexes. Measuring fat and eye muscle depth resulted in 3%, 4% and 21% additional economic index gain for the fine, medium and dual purpose indexes, respectively, whereas measuring reproduction traits directly resulted in 17%, 27% and 45% additional gain in the economic index. Dual purpose index gains benefited more from measuring ultrasound carcass traits as it is the only index with a direct economic value placed on carcass traits. Measuring fat and eye muscle depth also resulted in a greater reduction in worm egg count. The results indicated that desirable genetic progress can be made in wool, ultrasound carcass, internal parasite resistance and number of lambs born and weaned simultaneously using multiple trait selection to account for the mix of favourable and unfavourable correlations between these traits. These results also demonstrated that the best method to maximise economic gain is to measure as many traits (or closely correlated traits) in the breeding objective as possible.
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