5 tips for riding the wool market high
Wool producers are rejoicing as the wool market continues to remain strong after reaching record levels.
The Eastern Market Indicator (EMI) recently hit a historic new level of 1439 c/kg. The previous record of 1425 c/kg has stood since 2012, leaving producers confident for the year ahead. Those producers who stuck in the industry are now enjoying the rewards. The sale of stud stock is also experiencing a boost thanks to the record wool prices. This brings welcome confidence in the industry.
Like a lot of Australia’s commodities, it has been the Chinese market driving the price, with 75 per cent of Australia’s clip heading to China.
A strong opening to the 2017 wool market indicates the importance to farmers to breed sheep to not only produce strong lamb characteristics, but good wool as well.
Simple steps at shearing can make a big difference in boosting your profitability.
- Avoid contamination early
Pre-Shearing crutching keeps stain or dag out of the fleece line and using ear tags for sheep identification rather than brands on the wool, solves the problem of wool staining.
- Additional measurement
Additional measurement of wool for staple length and strength will help to increase the competition for your wool. Buyers will have all the information they need, maximising competition for the final product.
- Staff ratio
Normal practice has been same number of staff as shearers, but running one extra staff takes the pressure off everyone else giving them time to do their job properly.
- Good facilities
Providing good facilities for your woolclasser, shearing contractor and staff will give good results. Don’t just set up your shearing shed for shearing, plan a multi-purpose shed to include other sheep jobs such as classing, displaying sheep, loading trucks etc. An asset of this size and expense has to have more than one role or purpose.
- Take WH&S seriously
Practical innovations like sloping catching pens and a higher than normal raised board, make shearing and wool handling much easier. More detailed information on shearing safety can be found at http://shearingsafety.com.au/
Planning makes perfect and putting these simple practices in place help woolgrowers keep costs down and can maximise profits. Let Impact Ag show you how.