NATIONAL Wool Declaration data in 2022/23 has highlighted the value of Australian growers declaring the status of their clips with the NWD on clip specis.
In an update to members, Australian Wool Exchange chief executive Mark Grave has highlighted the discounts applied to non-declared clips and the premiums attracted by declared wool.
The update pointed out that market signals for declared wool were consistent and increasingly positive compared to the prices for similar wool without any declaration.
AWEX analysis of Merino wool sold in season 2022/23 showed that, on average:
16-18 micron wool that was not declared received the following discounts:
o 64-17 cents/kg clean less compared to wool declared as non mulesed (NM), and
o 39-2 cents/kg clean less compared to wool declared as mulesed (M)
17 micron wool declared as mulesed with analgesic/anaesthetic (AA) received an average premium of 47 cents/kg clean when compared to wool that is ND.
AWEX pointed out the same can be said for the non-Merino market, where analysis of auction data showed:
28 – 29 micron wool that was not declared received a discount of 15 – 13c less per kg/clean compared to wool declared as mulesed.
The 1.3pc decline in declaration rate during this period is a concern as there has been an increase of 2.5pc in the non-declared category (ND), which is being discounted compared to all other categories, AWEX said.
Mr Grave said the NWD has been a trusted industry document for over fifteen years and during that time the interest in it and the mulesing status of wool lots available for purchase has continued to strengthen.
“AWEX receives NWD verification requests on a daily and weekly basis,” he said.
AWEX said the NWD Integrity Program is highly regarded throughout the supply chain as many exporters require certificates of verification from AWEX for their customers, in support of their purchases.
AWEX said state-by-state breakdown of the data identifies those states which continue to lead the way in declaration rates and those who have the most opportunity to improve.
“Over the last 12 months, the market for merino wool has been volatile and the crossbred market continues to be challenging.
“This raises the question of why a wool grower wouldn’t declare their wool and take advantage of the better market competition that is available?” Mr Grave said.
AWEX said the integrity of the declaration is critical to the confidence buyers have in Australian wool.