Beyond the Bale - Issue 25 - Figures support value of staple testing
Woolgrowers are being urged to consider staple length and strength measurements as the AWTA keeps its charges at the same rate for the fourth consecutive year
Figures from wool auction sales have confirmed that significant premiums for staple-tested lots are available to woolgrowers across all micron and strength grades, including tender wool, with the price gains outstripping typical test costs.
Based on national figures provided by the Woolmark Company, the analysis was commissioned by Australian Wool Testing Authority (AWTA) Ltd, which is concerned that growers, especially in NSW, might be tempted to sell their wool untested in an attempt to economise on tests that typically cost four cents per kilogram clean.
Ian Ashman, AWTA general manager for customer relations, says the sales figures show that benefits above the cost of testing were available in 2005-06 for all micron categories and all lot sizes, including small lots.
"The significant premiums for staple-tested lots reflect the value that wool processors place on this information," Mr Ashman says. "The overwhelming message from the analysis is that staple testing pays handsomely, and I urge all growers, brokers and dealers to read the AWTA report and take advantage of these clear price signals."
While on the whole the premiums were softer than in the previous year, Mr Ashman says that even tender-fleece wool that was staple-tested showed significant premiums over untested wool. In fact, a premium was paid in all strength grades, ranging from 76¢ (25 to 30 Newtons per kilotex range) through to 41¢ for weak wools testing less than 25N/ktex).
"Even if a producer's wool is tender, they are generally better off having it tested, as buyers expect to have the information available and may build in a discount for wool that is untested, suspecting that the grower is hiding something," says Mr Andrew Lindsay, the sampling operations manager for NSW and Queensland who helped produce the report.
For Merino pieces, premiums were fairly stable at 33¢ over a range of microns (18.1 to 22.0 microns), while for crossbred fleece wool premiums averaged 10¢/kg.
"Despite the premiums paid for skirting types, NSW producers are particularly reluctant to test skirting, with only 45 per cent of NSW skirting sold at auction being length and strength tested compared to 80 per cent in Victoria and 60 per cent in WA," Mr Lindsay says.
The results of the analysis commissioned by AWTA Ltd have been published in Premiums for Staple Measurement, available from AWTA's website.
More information: Ian Ashman, 03 9371 4103, www.awta.com.au
Return to Beyond the Bale issue 25 index page.