Wool Production Forcasts 2013

If you are in the Merino ram buying business, selling wool and surplus sheep then the trends in the industry are important to you. Supply and demand pressures will make prices rise and fall.


Australian Wool Production Forecasts.
(From AWTA Limited)

Sheep Numbers: 
Between 2011 & 2013 national sheep numbers have risen by 2.7 %( 73.1--75.1m) but are forecast to contract to 74.4m eg. -1.0% in 2013-14.

Shorn Wool Production: 
Between 2011&2013 National production rose by 2.3% but is forecast to contract by 1.4% in 2013–14.

Wool Production by State: 
Between 2011 & 2013 wool production declined in QLD, TAS & WA.

In NSW it increased by 2.6%
In SA it increased by 3.3%
In WA it increased by 7.4%

 

I interpret this to mean there is a swing back to sheep on the basis of improved wool prices and lower risk in returns. The lower wheat prices and erratic yields are pushing farmers towards more sheep but many have no way back and are locked into fence to fence cropping by lack of sheep facilities and debt.
The overall shortage of wool is likely to push prices higher.
 



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