Discounts for Non-Declared Wool Confirmed

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Non-Declared Wool Discounted, While Premiums for Non-Mulesed Wool on the Rise, Reports Australian Wool Brokers Council

The discounting of non-declared wool has been the subject of some speculation in the industry. A recent statement from the National Council of Wool Selling Brokers of Australia (NCWSBA) confirms that this is indeed the case.

Discounts are emerging for lots of Merino wool that do not have a National Wool Declaration, reports the NCWSBA.

The National Wool Declaration (NWD) was introduced in Australia in 2008 to provide information to the marketplace, in response to users and buyers of Australian wool. The NWD enables wool growers to promote their animal welfare practices (mulesing status) and the Dark and Medullated Fibre Risk (DMFR) to wool exporters, processors, and retailers.

The NWD is a voluntary declaration from the wool grower, and the information it contains is transferable along the pipeline. Buyers may request a copy of the NWD for wool they have purchased for a processor.

The Australian Wool Exchange (AWEX), an independent, not-for-profit organisation, manages the NWD programme. See www.awex.com.au

At the upcoming IWTO Wool Round Table in Port Elizabeth, Mark Grave of AWEX and Louis de Beer of Cape Wools SA will share how the wool declarations of their respective countries are supporting wool grower commitment to transparency.

Earlier this year declaration rates were reported at 60%, and in some areas of Australia more than 70% of wool is declared.

The AWEX data also showed that premiums are rising for non-mulesed wool.

NCWSBA President John Colley said, “This is an important piece of information for Australian woolgrowers, confirming the market feedback of rising interest in non-mulesed wool among retail brand companies in using non-mulesed wool in their product ranges.

“These premiums are averaged across all wool sold in Australia by micron category. NCWSBA is aware of much higher premiums being offered by some companies for specific contracts. I hope that these premiums begin providing an incentive to producers of non-mulesed wool and offsetting the increased cost of moving away from mulesing.”

The statistically-sound data shows that the premiums for non-mulesed wool averaged between 13 and 30 cent/kg in 2016/17 for Merino wool 21 microns and finer. This is up from between 1and 15 cents/kg 2015/16 and from between -3 and 16 cents/kg back in 2010/11.

NCWSBA represents the majority of Australian wool brokers, with members accounting for over 87% of wool sold at auction in Australia in 2016/17. The full media release is available on www.woolbrokers.org

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