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 Merino producers miss out on top dollar 

Merino producers miss out on top dollar

04 Jun, 2009 08:28 AM
WOOL testing leaders are concerned a trend away from strength and length testing will cripple woolgrowers hip pockets, who are already fighting against decreased demand and a rising Australian dollar.

Premium prices paid for staple measured Merino fleece wool averaged 73 cents a kilogram during 2007/2008, up from 62c/kg three years prior.

The total volume of Merino fleece wool tested throughout Australia dropped from 89.1 per cent in 2007/2008 to 85.5 per cent in 2008/2009 period.

“We are concerned that for some reason the adoption rate is dropping and we want to make sure that growers fully understand that these measurements are required by our mill customers overseas,” Australian Wool testing Authority (AWTA) Ltd general manager Ian Ashman said.

Mr Ashman said staple measurement tested wool, which attracted record premium prices in the first half of last season, are the one way woolgrowers can get to the front of the buying mix.

“There are a lot of orders coming out of China who won’t buy un-tested wool, so growers are missing out on the competition straight away,” Mr Ashman said.

While acknowledging the decline away from staple measurement was “gradual”, Mr Ashman said “about a 10 per cent drop off” was a “disturbing” figure.

Around the country the drop off in bales being tested was most obvious in Western Australia, which fell by 9.4 per cent this year, with Victoria slipping by 2.1 per cent, NSW 3.3 and Queensland 6.7pc.

Tasmania and South Australia bucked the trend rising 3.9 and 3.4pc respectively.

Staple length measurement costs around $28 a lot.

Mr Ashman said it was clear cost savings were the cause, but he questioned this stance given the potential loss of income.

“Testing might work out at 3c/kg, but when you look at what you get back, the expense is negligible.”

Simon Hogan, the National Wool technician for Elders, said he was “surprised” by the AWTA figures when questioned about testing drop off, and cautioned whether the trend was significant.

“We have a system set up that automatically tests our clients wool,” he said.

“People have to request not to have this done (testing)……and this is not something we (Elders) are promoting.”

This sentiment was echoed by Rodwells wool manager Michael de Kleuver, who said he did not doubt AWTA figures, but maintained all Rodwells Merino clients’ wool was appropriately tested.

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