-
The robust market conditions for Merino wool also appear to be encouraging producers to retain sheep.
The Australian Wool Production Forecasting Committee forecasts that Australian shorn wool production in 2016/17 will reach 339 mkg greasy.
This 4.3% increase from 2015/16 is largely the result of excellent seasonal conditions in many areas resulting in higher fleece weights. The robust market conditions for Merino wool also appear to be encouraging producers to retain sheep, so sheep shorn levels are also expected to be higher.
As the Committee expected in December, the excellent seasonal conditions in virtually all of the major sheep producing areas of mainland Australia have resulted in higher average wool cuts per head this season.
Some states such as Western Australia, South Australia and Queensland have seen the benefit from the improved seasonal conditions throughout the 2016/17 season and fleece weights are even better than the Committee previously expected. For other states, notably Victoria, the improved seasonal conditions came later and average wool cuts per head have only increased at shearings from late Spring onwards.
The 4.3% forecast increase in shorn wool production compares with a 4.7% increase in the weight of wool tested by AWTA in the first nine months of 2016/17 and a 6.4% increase in the first-hand offerings of wool at auction recorded by AWEX. The Committee believes that some wool, particularly ultrafine wool, has been released from the stocks held on-farm and also from stocks held in broker’s stores in response to the high wool prices.
By state, the Committee predicts that in 2016/17 shorn wool production will increase in all states except for Tasmania, which is expected to see production steady. The largest percentage increase is expected to be seen in Queensland as that state recovers somewhat from the severe four-year drought. Western Australia and South Australia are also expected to see significant increases in production reflecting the excellent seasonal conditions.
