“The unsung heroes of the day were good colour oddments that well exceeded all expectations.”
PGG Wrightson’s general manager of wool Rachel Shearer said shearing costs were being covered for the vast majority of farmers at such prices, and in many instances the wool cheque was putting them ahead.
“Prices haven’t been at this rate since around 2011,” she said.
“So it’s great to see, once again, wool is adding to the bottom line of hardworking New Zealand sheep farmers.”
She said such strong results were helping to rebuild confidence in the sector, although she noted it came off a low base and the industry had a long way to go.
“The tide definitely does seem to be turning, and the really positive thing that we’re taking out of that is that the market is holding at these sustainable levels.”
Shearer said this was being driven by several factors, including the rising cost of petrochemical-derived synthetics because of the oil crisis stemming from the conflict in Iran.
“The world, ironically, is cottoning on to the wonderful properties of wool and the fibre that it is.
“But on the other hand, it’s not just New Zealand but Australia and other key wool markets – everyone’s at the lowest sheep wool-producing volumes that we’ve had since well before the First World War.
“So globally there is a supply shortage and coinciding with that is an increase in demand from discerning consumers who are wanting to move back towards a more natural fibre.”
Adding to this was increased “volatility” for the price of nylon and polypropylene pellets and synthetics, which were “no longer the cheap and reliable option”.
PGG Wrightson South Island wool auctioneer Dave Burridge and its general manager of wool, Rachel Shearer. Photo / RNZ, Monique Steele
Shearer said the Iran conflict had led to increased fuel and freight costs, but wool was still moving freely, mainly to manufacturers in China.
It was also not an “overnight turnaround” to transition from nylon and synthetics back into wool.
“Where it could impact, the longer the conflict goes on, is around the availability of shipping containers and where they … end up in the shipping channels around the world.”
Coupled with strong sheepmeat prices, she said the future seemed positive for wool producers.
“It’s making sheep farming a viable option again and hoping to stem that tide of land-use change and people moving away from sheep, because sheep are a really important part of New Zealand’s agriculture.
“So with meat prices and wool prices where they are, we’re hoping that that’s a stable base for New Zealand sheep farmers to build upon.”
– RNZ