NZ wool auction volumes at 6 year low in 2015/16 season

Monday 11th July 2016

New Zealand's 2015/16 wool auction season attracted the lowest volume in at least six years, reflecting a decline in the national sheep flock and as farmers sold wool through private contracts.

Some 445,477 bales were offered at auction in the year through June, 4.9 percent below the 468,165 bales offered at auction a year earlier and the lowest level since AgriHQ began collecting the data in the 2009/10 season. The latest seasonal data is 18 percent below the five-year average, AgriHQ said.

Declining wool auction volumes reflect a drop in the country's sheep flock to the lowest in more than 70 years, higher sheep slaughter rates due to dry conditions and an increased focus on meat-producing breeds. Some farmers are also selling their wool through private contracts rather than at auction in anticipation of higher returns and reduced commodity market volatility.

New Zealand is the world's largest exporter of crossbred wool, and the fibre is the country's 14th largest commodity export, worth $793 million in the year through May.

BusinessDesk.co.nz

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