Low wool price hits shearing
Wool prices at a 50-year low are expected to force farmers to look at their businesses and reduce shearing as they cut back on any extras.
New Zealand Shearing Contractors Association president Jamie Mcconachie said farmers were talking about the poor wool price and it would change the ‘‘viability’’ of shearing.
He said farmers were always assessing their business needs and in his years as a contractor, he had never seen such low wool prices.
‘‘As a result farmers are less likely to second shear [shear twice in a year] any sheep.’’
In the past year prices for crossbreed fleece had tumbled from $4 per kilogram to $2.
Federated Farmers Manawatu/ Rangitikei president, Richard Morrison said the low wool price was definitely affecting shearing policies.
‘‘Many farmers are storing their wool in sheds and waiting for a price lift,’’ said Morrison, a sheep and beef farmer near Marton. ‘‘This lift might take a while, but the quality of the wool deteriorates over time.’’
He said farmers could cut shearing costs by choosing not to shear lambs before their sale.
‘‘The cost of shearing a lamb is greater than the value of the wool. Farmers choose to shear their lambs due to other management factors but remember, farmers are not paid for wool on a lamb going to the meatworks.’’
He said farmers would be unlikely to second shear ewes, as it meant more shearing costs per volume of wool.
‘‘Farmers might decide not to skirt [sort] the wool. They could
The cost of shearing a lamb is greater than the value of the wool. Farmers choose to shear their lambs due to other management factors. Richard Morrison
save money, but not skirting any wool is not good for quality. And they could change genetics of sheep away from a focus on wool toward other traits such as fertility and meat. A change of breed may also be considered.’’
Morrison said farmers were thinking of ways to cut shearing costs, but maintain sheep management.
He said European farmers were getting even less for their wool than New Zealand farmers.
‘‘It is a sad state that a product with such good qualities and sustainable story behind it is not demanded around the world. It is a healthy reminder that the world doesn’t owe us a living.we need to take responsibility ourselves and tell our story and promote our produce.’’
And New Zealand First wants to put wool back on the political agenda.
The party says it would stop synthetic carpets being installed in government funded buildings and would only use natural fibre carpets such as wool and wool insulation.
‘‘The Government claims it will build 34,000 houses in Auckland over the next 10-years alone and what should be a bonanza for wool won’t be with National turning its back on wool,’’ said leader Winston Peters.
Wool’s export value fell to just $531 million in the year to May and that’s down 33.1 per cent on 2016.
Peters said New Zealand First believed in wool because it was naturally insulating, flame retardant, non-allergenic and it breathed.
‘‘If that’s not enough, wool can be recycled and unlike the stuff made from oil, it biodegrades when it is no longer needed.’’