RWS-certified wool demand rises exponentially in recent months, fetching more than 100c/kg premiums

Global demand for ethically-produced wool has risen exponentially during the past six months, with fleeces certified through the Responsible Wool Standard fetching premiums of more than 100c/kg.

And industry experts expect premiums to continue to rise as demand, particularly from Eastern Europe, continues to build.

Westcoast Wool and Livestock broker Justin Haydock said RWS-certified wool fetched an average premium of 6.5 per cent above the market, with specific clips showing up to 11.46 per cent premiums during the last RWS sale on April 30 — selling week 44.

“Total average price difference over 100 bales was $10,500,” he said.

“I’ve got another clip here that offered 41 bales, averaged 9.75 per cent above the market, and total price difference was 6k.

“Another clip here: 67 bales, $10,000 and an average 11.46 per cent above the market.

“And another clip here was a larger clip, but they did have lower yielding wool with with high vegetable matter, but that’s still average 6.2 per cent above the market, 200 bales, and total price difference of 22,000 there.”

Mr Haydock said the stats are based on sold prices versus AWEX quotes on the day for particular lines of wool.

The RWS is a voluntary standard — established by international non-for-profit Textile Exchange — which requires all sites, from wool farms to the seller, to be certified.

Farmers are evaluated against animal welfare, land management and social requirements to meet the standard, and all wool has to be produced from non-mulesed sheep.

Mr Haydock said he was conducting private RWS sales catalogues to offer larger volumes, which buyers preferred.

“We’ve identified that buyers really like the opportunity to bid on volume,” he said.

“They’re not force to take a position on the wool themselves. They can fill orders straight away, get it straight onto a ship and delivered to mills.”

Mr Haydock said low-yielding, high VM wools are heavily discounted in the auction marketplace however, RWS certification mitigates this discount.

“Looking forward, I think demand is only going to increase,” he said.

“Surprisingly, we’ve actually seen people drop away from the AWS.

“There could potentially be more growers start to sign up again now that the premiums are starting to increase but I think the demand will outweigh volume at the end of the day.”

Fremantle Wool Trading managing director John Bradbury said while there was financial benefit in being RWS certified and there was “certainly a demand in Europe”, many farmers simply “can’t be bothered with it”.

“The complexity of it drives everyone mad — it’s clunky,” he said.

“Non-mulesed is almost impossible to find and it’s harder and harder to find RWS wool.”

In week 46, May 14, the national offering was 30,931 bales, with 7529 were declared non-mulesed or ceased mulesing.