He was quick to point out that this was no reflection on farmers or how they were operating - it was a reflection on climatic conditions, which resulted in very low-yielding wools.
Mackay mentioned a top-performing sheep farming family in Southland, whose wool income for the last three financial years was $24,000 - with shearing costs over those three years being $37,000.
It was all very well to offer all the hope in the world but were farmers in danger of getting out of wool, he asked.
Mackay said there was a lot of interest in the self-shedding Wiltshire sheep but wondered if this was a dangerous track to go down. On the other hand, he wondered how long farmers could put up with such low prices for their wool clip.
Edwards agreed that Wiltshire sheep was a bad idea, especially since a cross-bred sheep offered both meat and wool - why not grow a good fleece while growing lamb.
While Edwards agreed that costs around the world were rising there was still optimism for the market.
Palle Petersen, PGG Wrightson’s general manager of exports, has been at the Domotex flooring trade fair in Germany.
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All the customers Petersen spoke to there were confident about the future, Edwards said.
One of the largest customers, for whom the bulk of their business is an 80 to 20 per cent wool-nylon blend, was now heading toward 100 per cent wool, he said.
There are two reasons for this, Edwards explained. Wool was cheaper than nylon and wool had a better end-of-life story as it was biodegradable and sustainable.
Edwards said China was basically out of the market. Their wool exports six months ago were roundabout 20 per cent - they’re now 30.
There was a price increase immediately after China ended their Covid elimination strategy but the further challenge was to lift the quality of the wool coming to market, he said.
