Using a customer focus to produce, harvest and prepare wool for sale
MLA & AWI August 5, 2024
The Australian Wool Exchange (AWEX) Code of Practice: For the Preparation of Australian Wool Clips – The Wool Classer describes the recommended practices and standards. The code aims to:
- Prepare uniform, consistent, reliable, predictable, low risk lines of wool suitable for the diverse needs of wool processing to maximise competition from buyers for the wool.
- Present a product free of contamination that is correctly documented, described and packaged.
Clips prepared to the Code of Practice will meet the needs of wool processors and attract the maximum competition at auction to maximise returns.
Australian wool is renowned worldwide for its whiteness and cleanliness, and consequently commands premiums compared with wool from other countries.
Contamination of the Australian Merino wool clip has mostly been associated with dark fibres originating from urine stain and isolated pigmentation found in the fleece. During recent years the introduction of exotic sheep breeds has brought a new and increasing source of dark and medullated fibre contamination. This contamination costs about $100 million each year to remove or correct by picking out from fabric after weaving.
Cost of production
Cost of production (COP) is a key factor affecting the profitability of wool-growing businesses. Measured in dollars per kilogram of clean wool, COP is an indication of the outlay needed to produce each kilogram of wool (see tool 1.8 in MMFS Module 1 Plan for Success). Calculating COP is an important step in assessing and improving the performance of a wool-growing enterprise. It is most useful when calculated across multiple years to track trends and influences over time and reduce the impact of seasonal variation.
The key benefits of knowing the COP are to:
- provide a benchmark to measure the performance of a wool enterprise year on year
- enable a comparison of the efficiency of an enterprise annually with other woolgrowers
- identify any opportunities for improvement and where an enterprise is performing well
- help set a target sale price that will achieve a satisfactory profit margin and help determine the right time and price to market wool.
Managing shearing
Shearing management and wool harvesting practices can influence the quality of wool sold. Tool 2.4 contains basic guidelines to assist with planning for shearing, wool preparation and classing.
Dark and medullated fibre contamination
Slips prepared to the AWEX Code of Practice will attract maximum competition from buyers at auction.
AWI-funded research by CSIRO developed the dark and medullated fibre (DMF) test for use on wool core-samples routinely used for yield and micron testing by Australian Wool Testing Authority (AWTA). For around $40 (plus GST), the voluntary DMF test:
- enables Australia’s white-wool producers to promote their wool as such to buyers
- provides buyers and processors with a reliable and quantified measure of the level of dark and/or medullated fibre risk in sale lots.
The Dark and Medullated Fibre Risk (DMFR) Scheme is a declaration that rates clips for contamination risk and advises buyers of Australian wool of the likely level of contamination of white wool from traditional natural pigmentation or stains and new sources such as exotic breeds.
The DMFR declaration requires Australian woolgrowers to formally identify on their wool classers’ specification or associated declaration form:
- if their stock have been in contact with exotic sheep breeds
- if whether their stock have been crutched
- if their stock have been crutched within three months of shearing
- the age of their stock (important if this is the sheep’s first shearing and also as they age)
- the sex of their stock
- a wool description.
Tool 2.3 describes how this information contributes to the ratings. Though lots of classers’ specification forms include a section for this information, it is strongly recommended woolgrowers complete the National Wool Declaration (NWD) to accompany all sale lots to give buyers the full range of information.
Woolgrowers can nominate all, some, or certain lines in their wool clip for inclusion in the voluntary declaration scheme. However, they must sign the statutory declaration form to make this valid in the catalogue.
Credentialled wool
Market research indicates a growing demand for credentialled wool – whether this is animal welfare-related or environment-related, or a combination of both. Typically, credentialled wool products are those made from fibre grown in an environmentally sustainable manner (see chapter 5.3 in MMFS Module 5 Protect Your Farm’s Natural Assets) and recognise animal welfare (see chapter 11.5 in MMFS Module 11 Healthy and Contented Sheep), human rights and social justice standards.
The demand for information about environmental and ethical sustainability in food and fibre products has accelerated significantly since the pandemic as consumers now see their purchase decisions as an agent for change. This ‘eco-awakening’ has important implications for wool and how it is positioned as a natural, renewable and environmentally friendly fibre choice. Having the evidence to back up any claims is paramount.
Australian wool is well positioned to meet this growing market demand with its ‘natural’ credentials it is a natural, renewable, biodegradable protein, produced in extensive grassland ecosystems. However, assurance of these credentials at finished product stage requires proof of compliance to certain standards through the supply chain.
The industry is working to enable all stages of the wool supply chain to:
- achieve sustainability goals and help our industry deliver positive outcomes for people, planet and prosperity
- dress the world in the most sustainable, circular fibre of the past, present and future
- support Australian woolgrowers profitably produce the world’s most sustainable fibre, optimal for circular, traceable products.
- position Australian woolgrowers as proactive, socially responsible and forward-looking stewards of the environment, building natural capital on their farms.
There are many different QA schemes and declarations with different priorities and requiring different forms evidence of on-farm practices that allow woolgrowers to accredit the wool in their scheme as having been produced in a certain way. A lot of woolgrowers already meet the requirements of many of the schemes, so woolgrowers should discuss with their broker which schemes their wool may be eligible for, how much they cost to participate in and the likely increase in competition or price received for their wool as a result of participating in the scheme to make an informed decision for their business.
It is recommended that, regardless of which QA scheme a woolgrower does or does not participate in, they complete a National Wool Declaration (NWD) for all sale lots. The NWD delivers transparency in the supply chain and market analysis has shown declared wool sells for a higher price than wool that is not declared.
Best-practice chemical use
It is of paramount importance woolgrowers follow label directions for all chemicals used on-farm to achieve the most cost-effective control and reduce the likelihood of developing chemical resistance issues, and adhere to safe levels set for environmental protection, sheep and human safety and quality of final product (both wool and meat).
To achieve the correct application of chemicals, read product labels closely (and the material safety data sheet, if necessary) and take care with the preparation and dispensing of the product.
Equipment must be suitable and set up correctly. Ensure correct calibration of the delivery tools and apply the product to well-prepared and contained sheep. Operators must take time and care with every sheep.
To ensure the safety of the operator:
- follow the safety direction on the label
- store chemicals correctly and securely
- wear protective gear
- carefully pour and mix chemicals
- have water, soap and towel ready to wash splashes off
- have clean-up equipment ready for spills
- wash hands before eating, drinking or smoking
- wash and store equipment straight after use
- change your clothes when you have finished chemical work.
Tool 2.6 describes currently recommended practices for the use of chemicals (pesticides) to control lice and blowflies on sheep.