Latest news with #AustralianWoolInnovation
West Australian
4 days ago
- Business
- West Australian
WA sheep producers' confidence grows but many still wary about growing flocks
WA sheep farmers' confidence is improving on the back of high sheep prices, but more than half are still planning on reducing their flock size during the next 12 months. The change in sentiment was revealed in Meat and Livestock Australia's most recent Sheep Producers Intention Survey, which collected responses from more than 2370 producers across the nation in May. The survey, released by MLA and Australian Wool Innovation twice per year, marked the first time since October 2022 that all States — including WA — had reported positive or neutral sentiment. WA, which had a net sentiment of -64 in May last year, has reached neutral ground at 0 net sentiment, one year on. MLA senior marketing information analyst Erin Lukey said the 'pronounced' rebound in sentiment in WA was closely linked to rising sheep prices. 'Prices have risen significantly, particularly for finished lambs, which has buoyed confidence even as producers face tough seasonal and regulatory conditions,' she said. 'This is especially the case in WA, where the rebound in sentiment has been most pronounced. 'While producers in WA are wary of investing in flock growth amid uncertainty about future market access, others are adjusting breeding strategies or retaining more replacement ewes to adapt to changing conditions.' Despite this, the survey showed WA graziers were still planning on reducing their flock sizes, with a lack of confidence widely attributed to the Federal Government's plan to ban live sheep exports by May 2028. The survey revealed there were 10.14 million sheep in WA in 2025, including 9.04m breeding ewes and 1.10m wethers. But that figure was set to dip to 8.12m in 2026, with 7.28m breeding ewes and 840,000 wethers. The survey revealed WA's breeding ewe flock was forecast to fall by 19 per cent, with 58 per cent of producers planning to reduce their numbers during the next 12 months. Ms Lukey said WA graziers were 'wary' and 'taking a conservative approach' with their businesses, while in the Eastern States a combination of drought and flooding were making it difficult to maintain large flocks. The WA response was in line with the national response, with 41 per cent of surveyed producers planning to reduce their breeding ewe flock and 26 per cent planning to reduce their wether numbers. 'Many producers are taking a more conservative approach. 'Input costs, labour availability, and regulatory pressures, particularly the live sheep export phase-out, are weighing heavily on producers' minds.' Survey respondents found it difficult to pin-point a single off-farm external factor shaping their decision-making, instead listing five that were having an effect. These were weather conditions and the impact on feed availability, continued mention of the live sheep export ban and government decisions, input costs specifically for feed and day-to-day expenses, personal circumstances and forward planning, and the access to and cost of labour. Ms Lukey said Australian sheep producers were adapting their strategies and continued to evolve in the market's current climate. 'Whether it's retaining more replacement ewes, adjusting breeding strategies or responding to market demand, the sector continues to evolve,' she said. While farmers were feeling more positive about sheepmeat, they were feeling notably more pessimistic about the future of the wool sector — with nearly one in two producers having a 'negative outlook' for the sector. The next Sheep Producer Intentions Survey will focus on lambs and be released in October.
Fibre2Fashion
20-06-2025
- Business
- Fibre2Fashion
Australian wool prices firm amid low supply, steady demand this week
Australian wool auctions saw firmer prices this week as limited supply met slightly improved demand. With only Melbourne and Sydney in operation and Fremantle sitting out, just over 20,000 bales were offered, of which approximately 95 per cent were sold. The market response was positive as all wool types and descriptions experienced price gains, despite buyers exercising caution. Merino wool prices rose by 10 to 20 Australian cents (ac), with high-quality lots fetching 30 to 40ac more. In contrast, lower-end types were 0 to 10ac dearer. Chinese top makers led buying activity, supported by traders and stronger China indent demand, likely reflecting hesitancy in long-term commitments due to low volume and inconsistent quality, the Australian Wool Innovation (AWI) said in its commentary for week 51 of the current wool marketing season. Australian wool prices rose this week amid tight supply and slightly improved demand. Around 95 per cent of the 20,000+ bales offered were sold. Merino wools gained up to 40ac, while RWS-certified lots attracted premiums of 150ac. Crossbred and carding types also saw modest gains. China and European buyers were active. Next week, over 32,600 bales will be auctioned across all three centres. European demand for Responsible Wool Standard (RWS) certified wool continued to command significant premiums, particularly in the 18 to 21 micron category, with some lots selling up to 150ac above standard types, the AWI commentary added. Crossbred wool performed solidly, with 28–30 micron types gaining 15ac (3.5 to 4 per cent), and finer varieties rising by 5 to 10ac. Coarser types also edged up by 5ac, while carding types posted gains of up to 10ac/clean kg. Next week's auction will see over 32,600 bales offered across all three selling centres. Fibre2Fashion News Desk (KD)
Fibre2Fashion
14-06-2025
- Business
- Fibre2Fashion
Australia's Merino wool prices ease amid tight supply, stronger AU$
Merino wool prices weakened at Australian auctions this week as extremely low supply volumes failed to support existing price levels. A stronger Australian dollar (Au$)—up 0.7 per cent against the US dollar and 0.5 per cent against the Chinese yuan—added further pressure to the local market environment. However, in both foreign currencies, the wool market showed slight gains of 0.4 to 0.5 per cent, suggesting demand is attempting to align with limited supply, the Australian Wool Innovation (AWI) said in its commentary for week 50 of the current wool marketing season. Exporters reported mounting difficulty in securing profitable sales. While Chinese buying persisted, it lacked the usual breadth. Nevertheless, top-making demand from China picked up, with the two largest buyers accounting for over 30 per cent of Merino fleece sales. Indian interest waned over the past fortnight, and European purchasing remained minimal, focused only on high-quality segments. Merino wool prices declined at Australian auctions due to extremely low supply and a stronger Australian dollar, despite slight gains in US and Chinese yuan terms. Exporters reported profitability challenges, with weaker demand from India and Europe, though Chinese top-maker interest remained strong. Crossbred and carding wools outperformed, rising 10â€'20 cents. Amid fragile global trade sentiment, buyers were reluctant to stockpile inventory, leading to reduced competition for less desirable wool types. However, strong top-maker activity in China helped support pricing for these lots. In contrast, crossbred and carding wool types defied the downtrend, with prices rising by 10 to 20 Australian cents across most categories, despite the adverse currency movements, the AWI commentary added. Grower willingness to sell remained firm, with only 8.3 per cent of lots passed in and clearance rates exceeding 90 per cent. Next week's offering is expected to total approximately 22,000 bales. Fremantle will not hold a sale, instead building supply for Week 52. Auctions in Sydney and Melbourne are scheduled for Tuesday and Wednesday, though with reduced catalogue sizes. Fibre2Fashion News Desk (KD)
Fibre2Fashion
30-05-2025
- Business
- Fibre2Fashion
Australian wool auctions see stable prices amid weak trading margins
This week's Australian wool auctions concluded with minimal movement in prices, as a calm auction environment and a stable Australian dollar kept the market steady, according to Australian Wool Innovation (AWI). Despite firm competition from China's top wool processor and select Indian and Chinese buyers, price adjustments were negligible. Australian wool auctions remained stable this week amid calm trading and a steady AUD. Despite firm competition, prices saw little change, with select high-quality lots fetching up to 10 per cent premiums. Exporters face tight margins, and declining bale volumesâ€'down 10â€'15 per centâ€'are impacting the wider industry. Around 23,600 bales are set for auction next week. 'Some notable prices were paid this week, notwithstanding the general unchanged nature of the market. These prices fetched around 10 per cent premiums and almost predominantly for the highest accreditation sale lots or the best quality and properly prepared wools on offer. This was on wools testing from 14.4 micron right through to 20 micron, although quantity limited,' the AWI commentary on week 48 of the current Australian wool marketing season said. Offshore demand held the market steady, but exporters reported increasingly tight margins, with some trades near break-even or loss-making. The subdued conditions are affecting all segments of the local wool industry, from growers to brokers and logistics providers, as bale volumes continue to decline by an estimated 10 to 15 per cent. With inflation impacting the broader economy, local supply chain players face limited scope to lower costs for clients. Instead, business owners are focusing on internal savings to remain viable. Approximately 23,600 bales are scheduled for auction next week, with Fremantle not offering due to seasonal constraints. Fibre2Fashion News Desk (HU)
West Australian
15-05-2025
- Business
- West Australian
Australian Wool Innovation survey set to determine the group's focus for the next six months
Australian sheep producer confidence slumped this time last year and it is now time to determine whether this sentiment has changed in the face of continuing harsh weather conditions and industry uncertainty. Australian Wool Innovation's Sheep Producer Intentions Survey is open for responses throughout May to do exactly this. Data collected will help analysts improve analysis and forecasts, and will be used as a tool when developing Meat amd Livestock Australia programs, to ensure adoption and communication efforts match industry sentiment. The SPIS is conducted in two waves each financial year — one in October and one in May. The surveys ask producers for their sentiment towards the sheep and wool sectors, current flock demographics and future intentions. In the May 2024 report, weather was noted as having the most impact on on-farm decision making for wool, lamb and sheep meat producers in Tasmania, Victoria and South Australia. Meanwhile, WA results noted personal circumstances as a larger decision driver. Personal circumstances included age, workload and succession and were pronounced in regions experiencing prolonged uncertainly. In WA's case, the ban on live sheep exports explained uncertainty sentiments. More than 2000 producers Australia-wide participated in the May survey. As a result of the survey findings, MLA noted personal considerations as an area where the industry may need to place more focus to ensure the longevity and succession of the sector. According to the October 2024 survey findings, negative sentiment dropped a marginal 2 per cent. Results from past reports can be viewed on the Meat & Livestock Australia website .
