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The Country's Jamie Mackay is joined by PGG Wrightson's GM for Wool Grant Edwards to discuss the state of New Zealand wool and the implications currently facing the wool market.
Don Carson from the Forest Owners Association has said that dairy is now worth 30 times more than wool to the NZ economy. Mackay said he found this bizarre as it is not reflective of historic trades.
Wool was our biggest single export and is now meeting a multitude of challenges said Edwards, who pointed out that a reasonably stable wool market generates 5-600 million in returns to New Zealand per annum.
Mackay mentioned that finer wools and lamb wools are still performing well but there are still issues with crossbreed wool due to discolouration issues.
The poorer coloured wools are negatively impacting the market as farmers choose to hold onto wool early on in the season resulting in "held wools" saturating the market said Edwards.
Wool returns have become dependent on China, and exports to China have pulled back a bit overall in this market this season.
Across all world markets, year to date, New Zealand is back 9.8 per cent in wool exports said Edwards.
China is reflective of what has been happening worldwide and is contemplative of farmers holding onto wool said Edwards.