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27 September 2021
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Market Commentary

Wool Interview on the Country

WOOL ARTICLE: Wool Market a “Game of Two Halves”

This week The Country’s Jamie Mackay is joined by PGG Wrightson’s GM for wool, Grant Edwards, to take a look at the wool market this month.

Mackay describes the market as a “game of two halves.” Edwards agrees and explains that this is around the great performance of finer wool (such as merino), which is at the peak of their selling season. In comparison, the crossbreed wool market has seen some decline. Edwards says that a portion of this decline is being driven by the lack of demand from the international market, in particular China.

Shipping costs continue to be a disadvantage for the wool industry. Mackay adds that a kilo of wool takes up more space than a kilo of meat, and it’s only worth a fifth of the value.

Edwards explains that a packed container from China to Europe (pre-covid) cost around $2,000 USD per a container. This cost has now increased to around $10,000+ USD per a container. 

Mackay moves onto the concern of workers and having enough people to shear New Zealand’s 30 million sheep this season. Edwards agrees and notes that this is also across other industries such as horticulture.

Despite New Zealand’s alert levels and cancellations of local A&P shows, it is great to see that the New Zealand merino shears are going ahead in Alexandra followed by the Waimate Shears.

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