Merino sheep in full wool in race before shearing.
AUSTRALIA’S Merino wool prices needed to be sustained at higher levels to increase the flock and maintain and increase fleece production, according to WoolProducers Australia president Steve Harrison.
Mr Harrison said the price increases are tremendous.
“I think they (Merino wool prices) have gone up over a $1 a kilogram in the past week, but what we can’t afford going forward is for the prices to slip back.
“We need a sustained increase to allow producers to put out more Merino rams; to give them the confidence to continue with Merinos.”
Mr Harrison said and AWEX Eastern Market Indicator level of around 2000c/kg is needed to maintain the Merino flock and lift wool production.
“We’re heading that way; it has come from 1000 to 1500c/kg, but for the amount of work that is involved with running Merino sheep, you need that indicator to be at $210/kg across the board.
“We need that price rise now; we need it to keep going up and not down,” he said.
“And downward fluctuation is going to be detrimental to the confidence of wool growers.”
Mr Harrison said there are still wool growers who considering whether they continued with Merino sheep, despite a small increase in producers moving back into wool.
Australia’s shorn wool production forecast for 2025/26 has been revised down to 244.7 Mkg greasy, 12.6 percent lower than the 2024/25 season estimate.
Shorn wool production forecast to decrease in all states
The Australian Wool Production Forecasting Committee expects the number of sheep to be shorn in 2025/26 will be 56.5 million, down 10.3pc.
The average cut per head is expected to be 4.33 kg greasy, down 2.7pc.
The committee recently said shorn wool production is expected to decrease in all states.
Committee chairman Stephen Hill said seasonal conditions continue to bite in some key wool producing regions, particularly in southern New South Wales and Victoria.
In comments prior to the recent auction price rises, Mr Hill said wool prices are currently 40pc higher than last season and sheep meat prices remain high, which have improved producer sentiment regarding wool production.
“However, sheep numbers remain at historically low levels and are likely to take 18 to 24 months to increase due to low numbers of breeding ewes and continued strong demand for mutton and lamb,” he said.
“The high cost of replacement breeding ewes and concerns regarding stock water availability over summer, particularly in Victoria, are expected to temper any short-term recovery in sheep numbers.
The October 2025 Sheep Producer Intentions Survey indicated a sharp rise in producer sentiment regarding the wool industry compared with May 2025 with twice as many producers indicating they have a positive rather than a negative outlook.
Sheep and lamb slaughter from July to September 2025 were down 26pc and 18pc respectively compared with the same time in 2024, but sheep slaughter was still 11pc above the five-year July to September average, and lamb slaughter 10pc below.
Based on ABS slaughter numbers, mutton and lamb production, both sheep and lamb weights were higher than the September quarter in 2024. Average cut per head is forecast to be 4.31 kg greasy (down 3.1pc).
The committee said AWTA key test data for the 2025/26 season to the end of November show no change in mean fibre diameter or vegetable matter, a 0.1 mm increase in staple length, 1.2 N/ktex reduction in staple strength and a 0.6pc reduction in yield.
AWTA wool test volumes (greasy weight) for the 2025/26 season to the end of November were down by 10.4pc on a year-on-year basis. Firsthand wool offered at auction during 2025/26 to the end of November was down by 3.9pc.
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