Drought conditions persist in all key sheep production regions and many producers are running significantly reduced flocks.

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Ninety-six per cent of New South Wales remains in one of three drought categories, according to the NSW Department of Primary Industries Combined Drought Indicator. The south east shows that the drought across the region is intensifying.

For some, uncertainty surrounds plans to shift rams.

Nearly 23 years ago, Leona and Lionel Evans opened their own Border Leicester stud, Cuddyong.

Buyers have fallen with the seasonal challenges justifying the decision to reduce the number of rams for sale.

The Evans continues to run a reduced flock, joining the remainder of their ewes to Poll Dorset rams to produce prime lambs.

Mr Evans said he's cut down the number of rams for sale from 50 in 2018 to 35 this year. "A few years before that I didn't have rams to meet everyone's requirements," he said.

In previous years, the business at Bannister mainly based its ram sales on loyal local buyers.

Their sheep include genetics sourced from the same stud for about two decades.

When the Evans left their Merino sheep business and the family home at Peelwood, their first registered stud flock at Cuddyong, near Bannister, was established.

Mr Evans has grown the stud from the first of flock of registered ewes, which was purchased off the Reeves at Narrawa.

He has since introduced Retallack genetics for his rams. Border Leicester rams have been sourced from Graham Grinter's Retallack stud at Ariah Park.

"If you're onto a good thing, stick to it," Mr Evans said.

He said he looked for rams that had sound conformation and a good heavy cutting fleece.

Mr Evans, at 80, aims to continue the enterprise and market the rams for sale on-farm.

This season has been tough, but the flat country at Cuddyong holds the regular small falls of rain it has been receiving.

The national flock is expected to fall to 65.8 million head, a decline of 6.8 per cent year-on-year, the latest updates from Meat and Livestock Australia show.

Dry conditions have led to national heightened sheep slaughter and lower-than-expected lambing rates.

Unfavourable weather also drives the contraction in the national sheep flock.

As at June 2018, MLA figures show the national sheep numbers was 71 million head, with around 3.3 million in the south east of NSW.

Meantime, the Bureau of Meteorology's forecasts do not show a turnaround in conditions for the next few months.

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