Wool report: The future is bright but it will take time

PGG Wrightson's GM for Wool Grant Edwards. Photo / Supplied

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Jamie Mackay discussed the current state of the wool market with Grant Edwards, GM of Wool at PGG Wrightson.

While the war in Ukraine had the potential to impact the market, the bigger issue was lockdowns in China.

Edwards was particularly concerned about the lockdown in Shanghai, arguably the major port in the world.

Stopping the movement of goods through China had a significant effect, as a lot of New Zealand wool went to China - especially wools with more yellow in them.

Mackay turned the discussion to rising shearing rates and the heavy financial impact this had on farmers.

Shearers undoubtedly work hard but rising rates had the potential to make harvesting of wool less economic, Mackay said.

Edwards agreed but also pointed out the difficulty of retaining shearing staff in a tight labour market.

He emphasised the need to invest in training for what was a specialised skill - and to pay shearers accordingly.

Mackay raised the hot button issue of altering sheep genetics, more specifically moving flocks to be self-shedding.

He admitted it would be tempting at the moment but if the wool market recovered, it would take a long time to turn it around.

Edwards agreed there were issues around this. Especially going from a base Romney flock which had sometimes been nurtured through generations.

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Care needed to be taken that any changes were not knee-jerk.

It could take between five and eight years to make those genetic changes and they could be significant. You don't get back out of them in a hurry.

Sheep farmers needed to understand what that meant for the constitution of their animals. Things like facial eczema and a whole lot of other factors.

Edwards' best advice was to be pragmatic and do your due diligence. The future of wool was still bright - but it would take some time.