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It is looking increasingly likely that 2019 is going to be another extremely challenging year for the wool trade.
Merchants report continued low levels of interest from Chinese buyers, which does not bode well, as they are by far the main players on the world market.
Quotes for lowland wool are averaging around 50c/kg, which leaves the average fleece weighing 2.4kg to 2.5kg worth €1.20 to €1.25.
There have been keener deals completed ... where the set-up allows large numbers to be handled in a shorter period
Shearing costs are reported in the region of €2.30 to €2.50 per sheep, which leaves farmers having to subsidise wool sales to the tune of €105 to €125 to cover shearing costs for a 100-ewe flock.
Higher rates of €2.80 to €3.00 per sheep have been reported in some cases for small flocks where the shearer is carrying out additional work.
Likewise, there have been keener deals completed at a cost of €2 to €2.20 per sheep where large numbers are concerned and the set-up allows large numbers to be handled in a shorter period.
Bleak prospect
The situation is even more challenging for hill sheep farmers, with merchants slow to quote.
Some are citing the possibility of the trade failing to match 2018 price levels, where white Scotch wool traded at 30c/kg to 35c/kg and black or grey Scotch wool averaged just 20c/kg to 25c/kg.
This is a devastating scenario for hill sheep producers, with costs to shear a 100-ewe flock needing to be subsidised by anywhere from €140 to €200.
There is no fortune in it for farmers carrying out their own shearing, with the worst return for Scotch wool were it to only realise a value of 25c/kg accumulating into a value of about €50 for a 100-ewe flock.
This rises to €125 for a lowland flock and does not take into account machine running costs.
Weather concerns
The recent inclement weather is making it difficult for farmers to progress shearing.
Merchants are urging farmers to take the necessary precautions to ensure wool is shorn dry and then stored in a manner that will prevent it from getting wet or damp.
They say that as bad and all as the value is of wool when it is saved clean and dry, it will be worthless if it is shorn wet or allowed to get wet post-shearing.
SHARING OPTIONS: