Australian Superfine Wool Growers' Association Inc.

Report from Ararat/Barunah Region November 2007

The past few months have presented quite a medley of climatic conditions in the Ararat/Barunah region.  After receiving good soaking rains earlier in the year, hopes were high that we may be on track for one of those elusive ‘bumper years’. And that was the way it went for a while.  Early pasture growth was positive with winter proving to be maybe a little too wet in some areas.  This however was most satisfactory, allowing for the replenishment of diminished stock water supplies. Unfortunately as the year has progressed the weather pattern seems to have reverted back into that familiar model of low rainfall and drying winds.

Currently it may be fair to say that the northern section of the region is slipping back into the grasp of drought and the southern section is just hanging on. Recent rain could yet prove beneficial to any remaining fresh pasture, but unfortunately it may be too late for many.

On a brighter note the underlying demand for wool is encouraging.  Despite the high Australian dollar the market seems to be well supported.  It appears that wool definitely has its place. With production at critical lows due to drought and the influence of alternative practices such as fat lamb production, wool seems to have lost favour within the farming community. This is particularly the case amongst the younger generation.  However, if the market can lead with some confidence I feel that wool production will once again be recognised as one important element of a diversified farming program.

With the spring shearing season well underway reports indicate that the clip certainly reflects the difficulties of the past year.  In most cases tensile strength is below average and dust penetration is high.  Once again the importance of nutrition cannot be overstated. Growers that were able to sustain adequate nutrition levels throughout the leaner months are finding their animals are in good order and wool cuts are acceptable considering the season.

Report from Albury/Wodonga Region November 2007

Our vast region has experienced enormously different outcomes to a difficult season.

In the lower northeast little rain since early July has meant a very poor spring with limited pasture growth and poor cereal production.  Virtually no grass fodder was conserved and the only fodder available was cereal that didn’t look like they would finish to grain.  Fodder conservation took place three weeks earlier than normal.  Most people were finished when some rain came.  It was a useful rain although too late for pasture growth it did help to fill some cereals that had been left to harvest.  Water is going to be the big issue in the lower northeast with very little run off for 3 years.  The Ovens and King Valleys and the Upper Murray were blessed with good storm rain that resulted in one of their best seasons for a long time.

Congratulations to Frank O’Connor for a sterling effort in difficult times.  The Northeast Region would also like to wish Kevin Dunn all the best in his endeavours during his time as President.

Report from Goulburn/Yass Region November 2007

Since the last regional report in July, seasonal prospects which at that time were starting to look promising, have declined alarmingly to the point that most growers are facing more challenging conditions than this time last year- and that is saying something, given last year is widely regarded as the toughest season in most people’s living memory.  Factors that add to the severity of current circumstances are that on-farm fodder supplies have been exhausted and current price of off-farm fodder supplies are exorbitant and very difficult to source.  The seasonal prospects suggested in July certainly have gone awry and many growers are now facing the seventh year of well below average rainfall with only short periods of tantalising relief from prolonged and deepening drought conditions.  The significant and widespread June rain at least relieved farm dam water supplies for most landholders although current evaporation rates which are running at more than twice normal are now taking a toll on surface water supplies.  On a more positive note, the weather conditions have provided good conditions for shearing and spring lambing flocks and, provided ewes were in sufficient condition at joining, lamb marking percentages have been good given poor paddock conditions over the past twelve months.  Ironically a factor in this is likely to be the very low to non-existent levels of internal parasites due to the prolonged dry conditions.  Although officially we are no longer in an El nino phase, future rainfall expectations for the region are at best average and given the current status of soil moisture reserves and pasture conditions, ‘average’ is unlikely to be good enough for most landholders.  Widespread falls of around 25 to 50 mm across the region at the end of October have raised flagging hopes at least for the moment.  Although welcomed such falls at this time of the year require on-going follow up falls if any benefit is to be realised.

The strengthening of the wool market is encouraging, although the parallel strengthening of the Australian dollar against the American greenback has taken a lot of the gloss off the returns actually received by growers at a time when production costs are increasing significantly.  Prolong drought and depressed prices having seen most producers reduce their flock numbers, in particular the high wool producing wether portion of their flocks; the fixed costs are now spread a over much lower wool clip and the variable costs are up significantly due to costly hand-feeding demands.  The overall consequences are that, despite improvement in superfine wool prices, growers are still facing further tightening of the economic pressure upon those who remain.

The Wool Arvo organised by the Branch (13^th July) was well attended in attracting about 130 wool growers from across the region.  The opportunity to ask questions of notable spokespeople covering most sectors of the wool industry was very well received with many pertinent questions raised by attendees receiving in-depth replies from forum members.  A most welcome comment came from Mark Grave (AWEX) who, in responding to a query, volunteered with conviction that the ASWGA logo is held in very high regard both nationally and around the world as signifying very high clip preparation standards.  It is heartening to hear this from the agency responsible for monitoring national clip preparation standards, particularly during such taxing times.

The update on the Test Marketing Program (TMP) by Brenda McGahan was again enthusiastically received by growers who were particularly interested in hearing how the positive lessons learnt from the successful marketing activity could be built upon to further the market prospects particularly of superfine wool.  Unfortunately, while encouraging and supporting the single entity integration of AWI and AWS, members were saddened with the quick departure of Brenda from the new entity.  Members will watch with more than usual interest as to what steps are being taken to build upon the experiences from TMP; to loose the traction established during the short period of TMP would be a further slight to growers in their current hour of need.

Front page coverage of Wool Arvo’s key presentations by Australian Wool Network (AWN) in their August Client Newsletter, Network News provided welcomed coverage and promotion well beyond our region.  We are most grateful for this latest promotion of our activities which builds upon the long-standing support that has been provided by AWN.  Such coverage is providing an additional catalyst from prospective members and built upon local press and radio coverage of the event.

An invited presentation was given by the Chairman, to the ABARE Outlook satellite conference (25^th July) at Lakes Entrance on the topic of Farming under landscape and climate challenges.  The conference, with ASWGA banner prominently on display, was attended by local member, Federal Minister for Agriculture, Forestry and Fisheries and attracted 130 farming and agri-business delegates with good media coverage across a wide range of print, radio and television including personal contributions.

Finally, the sentiment of the closing remarks from the July regional report unfortunately remains most apt; (viz. The impact of prolonged drought and depressed prices will leave a legacy that will take several seasons to overcome even if more normal seasonal conditions have really returned and superfine wool prices recover the momentum shown towards the end of May.  If only we can be so fortunate!).  It is now pretty clear that we will be forced to wait even longer on both scores to be fortunate.

Report from Hamilton Region November 2007

What a year we have just been through!  Last year having a Spring when we received many frosts which cut pasture growth and damaged many crops which were cut for hay instead of grain, we started summer early.  Stock however were in good condition and done well on the feed we had, which was high in nutrition having not been damaged by rain.

Summer was very hot and many bad windy days, which resulted in a lot more dust in the wool than usual.  Fortunately we had no bad bushfires, although several hay sheds burns because of spontaneous combustion, making feed supplies ever scarcer.

Many people had water supply problems, with some having to sell stock.  Our region was lucky to have access to hay and grain supplies generally not too far away, although feed has become expensive.

In late April we found the rain would still fall and the autumn break had arrived.  We have now had good rains and currently most of our region is quite wet, with some areas to our south back to normal winter with some waterlogging.  Pasture growth has been quite good as we move to longer days and spring; with most dams now full also.

The wool market in recent months has also shown a marked improvement, especially for sound and stylish Italian style wools.  However with the Australian dollar currently at record levels, the wool market has eased back, which is a concern to all woolgrowers.  Due to high production costs from increased feed, fuel and fertiliser costs, prices are still barely at a break even point for many growers.

Wool cuts from people who have shorn in our region have been encouraging.  Although there is a lot more dust, length and weight have been good, tensile strength generally good and more stock in better condition than expected, especially those who have fed their stock well.

Members have again supported the Zegna competition, with two placings in the top ten unprotected and also a second in the protected.  Ram sales have stabilised at the lower levels of the past couple of years, with numbers and prices generally holding at these lower levels.

On Sunday 15^th July we hosted President, Frank O’Connor and President Elect, Kevin Dunn for their Annual Reports on the past year’s activities and visits to the overseas mills.  We thank Frank for this work over the past three years and wish Kevin well when he takes over.

Report from Mudgee Region November 2007

This quarter has been very tough as rainfall goes, however, the Region did receive good rain at the start of November but there is no saying that this will continue.  The weather in the Region has turned cool, so we may have a late spring as it was a hot dry start at the beginning of the season.

Sheep are in good condition and are grazing well on their own which is a change from continuous hand feeding.  Most wool clips are down about 20% or more due to the drought with tensile strength about 20 – 40 nkt. and some with dust particles in the wool but little vegetable matter.

Most sheds in the Region have finished shearing now and clips will probably be sold soon with anticipation.  

Report from New England Region November 2007

The New England regions’ seasonal conditions this spring are best described as average.  Following a cold winter we had good rain in late August which was a great start to spring.  September & most of October were hot and windy, undoing our great start, but good rain in late October & November has turned pastures bright green.  The region is heading toward its wetter period so sheep should have good feed for the next season.

Many members hand fed stock through winter up to lambing time.  Reports of lambing percentages this spring are about average, but following recent rain the lambs look fresh & have bloom about them.

Wool sales have responded well with wools of higher strength the best performed.  The market indicator is approx. 150c/kg above the same time a year ago.  Very low micron wools have been enjoyable to sell especially those good types under 14 micron.  A pleasing sign is the strength of 18 micron fleece wools as well as skirtings.

Some highlights have been:   

                                    Munsie Family & Fittler Family – 64,000c/kg shedded  12.9m

                                    Martel Family – 31,200 c/kg  13.9mic

                                    Annie Hutchinson – 26,000 c/kg

                                    Bower Family – 23,700 c/kg  13.9 mic

The New England Stud Merino field days will be held again this year.  They are on Saturday 12^th & Sunday 13^th January 2008.  Several members are exhibiting their wares.  A fleece competition will be held in conjunction showing the best of our product.  This is another great opportunity to view the regions best & allows us to compare, discuss and debate.

Our Christmas meeting and party will be held this year at our member Darryl and Robyn Carters Property.  They have recently established a vineyard and are conducting cellar door sales as well.  This will be an opportunity to enjoy Darryl and Robyn’s hospitality with friends and fellow growers.

Report from Tasmanian Region November 2007

For the second year the season has failed and all Tasmania is now under Exceptional Circumstances drought declared. Some areas in the South, North and North West are having a reasonable spring. However the traditional Midland superfine area based on Ross is in a very serious situation.

Shearing is nearing completion with significantly lower volumes and with growers facing further reduction in sheep numbers. Fodder reserves are very low and costs of imported grain very high.

The Tasmanian clip is extremely fine this season   with production under 15.5 microns rising by 62.1  tonnes or 466%  and 15.6 to 16.5 micron range rising by 148 tonnes or 84% %. With 16.6 to 17.5 range rising by 142.6 tonnes or 23 %.

The 17.7 to 18.5 range falling by 300 tonnes or 25 % and the 18.6 to 19.5 range falling by 560 tonnes or 50%. This is the main area of production normally.

Improved prices are helping the situation but the majority of the traditional superfine wool has yet to be sold.

The February sale has been reduced to two days when the premium superfine wools will be offered.

Stud ram sales are due to take place shortly with good catalogues from Winton, Rokeby and Trefusis.

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