Woolgrowers lose out when not declaring status compared with premiums on offer for accurate declaration

Woolgrowers choosing to not complete the National Wool Declaration forms accurately are loosing up to 64 cents per kilogram for super fine types submitted for sale as non declared.

AWEX’s latest analysis of NWD market data from the 2022/23 season highlighted the value and benefit of completing the declaration that could result in a premium price of about 47c/kg more than others.

AWEX chief executive Mark Grave said market signals for declared wool were consistent and increasingly positive compared to the prices for similar wool without any declaration.

“The NWD has been a trusted industry document for more than fifteen years and during that time the interest in it, and the mulesing status of wool lots available for purchase, has continued to strengthen,” Mr Grave said.

He said the NWD Integrity Program was “highly regarded throughout the supply chain” as many exporters required certificates of verification from AWEX for their customers, in support of their purchases.

AWEX data indicated that total declaration rates have stalled over the last three seasons, declining from 76.1 per cent (season 2020) to 74.8 per cent (season 2022).

“The 1.3 per cent decline in declaration rate during this period is a concern as there has been an increase of 2.5 per cent in the non-declared category, which is being discounted compared to all other categories,” Mr Grave 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,” he said.

“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 analysis of Merino wool in season 2022/23, highlighted on average, that 16-18 micron wool that was ND received discounts of 64-17 cents less per kilogram clean compared to wool declared as Non Mulesed, and 39-2c less per kg clean compared to wool declared as Mulesed.

He said 17 micron wool declared as Mulesed with Analgesic/Anaesthetic received an average premium of 47c/kg clean when compared to wool that was ND.

“The same can be said for the non Merino market, where analysis of auction data showed that 28-29 micron wool that was ND received a discount of 15-13c less per kg clean compared to wool declared as Mulesed,” Mr Grave said.

“The integrity of the declaration is critical to the confidence buyers have in Australian wool.”