Thursday, 17 December 2015 06:55

Bounce for wool cheque

Written by 
A combination of factors have given wool cheques a lift and helped to balance sheep farmers' incomes. A combination of factors have given wool cheques a lift and helped to balance sheep farmers' incomes.

A combination of factors have given wool cheques a lift and helped to balance sheep farmers' incomes, says Kaikoura wool producer and industry representative Derrick Millton.

New Zealand spinning companies, although relatively small users of wool in this country, are flat out at the moment, says Millton, who is chairman of the Wool Research Organisation of NZ (WRONZ).

The lower dollar is also contributing. Either wool demand is increasing, or the supply is reducing, but all those things together "have given farmers' wool cheques quite a lift," he told Rural News.

"That is quite significant. You can put it down to all those things – supply issues, demand issues and people perhaps wanting to use NZ wool because of its superior production or processing capability.

"Hopefully the NZ wool industry is on a better path. Definitely three years ago it was below the level of production and now we are seeing some profits coming to farmers from wool production.

"After they have shorn their sheep there is a reasonable amount left. It's not substantial but that rise has been pretty useful."

He says the clean wool price is now at least $6/kg whereas two years ago it was $4-$4.50.

"Mid micron wool has been a star performer," Millton says. "It has started to really increase in price and compete with Merino. The apparel trade has boosted that." – Pam Tipa

More like this

Facial eczema – the hidden killer

Most of the damage caused by facial eczema (FE) is subclinical (no obvious external signs) and goes unnoticed until it’s too late, comments Agritrade.

Featured

 

» The RNG Weather Report

» Latest Print Issues Online

The Hound

Appropriate

Your canine crusader reckons it is ironic – and highly appropriate – that Shane Jones’ $3 billion electoral slush fund…

Funny names

Over the years, a mate of the Hound’s has always been quick to point out to him people in roles…

» Connect with Rural News