The group was set up by Agriculture Minister Damien O’Connor in July 2018 to create a sustainable and profitable wool industry action plan to revitalise the languishing sector.
But it’s not happening quickly enough and wool growers are raising their brooms as the shearing bill now outstrips the wool cheque.
Increased market uncertainty, exacerbated by coronavirus, resulted in almost half the Christchurch offering going home last week.
PGG Wrightson South Island wool sales manager Dave Burridge said the downward direction that has characterised the ongoing crossbred wool market has fallen to an unprecedented low.
“At $2.64 a kilo (clean) farmers are taking their stand at this level and taking their wool back home.
“We had a 44% pass-in rate on bales not meeting growers’ reserves.”
Continued market erosion and lack of confidence mean buyers are covering only existing, limited orders and there is little business in the open marketplace.
Lambs’ wool is also erratic. It took a 40c a kilogram dive with buyers favouring only that showing the lowest vegetable matter readings.
PGW North Island wool manager Alan Jones said while the top of the lambs’ wool sold not too badly it was very hard to move lesser quality fleece.
“We hope things settle down and we see some improvement soon,” Jones said.
With the group’s report long overdue from its flagged date of September 2019, Federated Farmers meat and wool chairman Miles Anderson said there’s grave concern it’s going to come all too late.
“The fear is momentum has been lost.
“It’s shocking at the moment.
“We didn’t think it could get any worse but, shit, how wrong can you be.”
Anderson understands the report is under embargo until O’Connor sets its launch date.
“This uncertainty in the industry is having a major impact on farm businesses and when it’s costing to take the wool off there’s a very real reluctance to do the six-month shearing, which is about animal welfare.
“Farmers are re-evaluating and the uncertainty hasn’t buoyed any confidence whatsoever on crossbred wool producers.
“If this isn’t signaling the industry is desperately in need of change then nothing will,” Anderson said.
“This report will be really important for farmers and the big issues the industry as a whole needs to address. We’ll hopefully see it very soon.”
Group chairman John Rodwell said it has been through the draft report and is working on the recommendations.
“There are a lot of steps in the process to work through. If it was an easy fix it would have been done. It’s not easy.
“This will be a new way of thinking for the industry in the future,” Rodwell said.
He expects it could be three to four weeks before the report is released.
O’Connor said while it’s taken longer than expected it’s important to get it right.
“It has got to connect with farmers and if they can’t see that this will deliver a better future for wool then it’s been a waste of time.
“I have kept the pressure on the group.
“I’ve said you take longer if you need to but make sure you deliver something that is actually going to inspire farmers and provide a better future.”
He makes no apology for taking longer to try to get it right.
“Because if we don’t it’s all going to fail,” O’Connor said.
