| Wool Market and News
Wool Marketing: 2007 and a Look Ahead to 2008
The 2007 wool marketing season has come to a close and overall, it has been a year
that producers saw higher returns from their wool. As the shearing season began
last spring, producers and processors were coming off a stronger market and we were
uncertain about whether the new year would be able to hold onto the gains we had
made in 2006. The year was slow to develop, but most were confident that by the
end of the year all the wools would be able to find a market. As the year
progressed prices started to separate themselves by micron and the finer wools,
23 and finer, started to see more interest and prices began to become
stronger. Wools finer than 21 micron were particularly in demand.
The medium wools, 27-31 micron, that make up the majority of the wools we find in the
mid-west, remained slow to find a stronger market. The year started with these wools
selling at steady to slightly lower levels, but as the year moved ahead, and the fine
wools kept moving higher, the medium wools were pulled along to higher prices. We
understand that all producers would like to see more, but any increase in wool
prices should be seen as a positive for the industry. It means that the downsizing
of the industry is slowing down and we are seeing a more steady demand for our
product.
Blackface and wools with any type of defect were under pressure by the market for the
entire year. Unfortunately, this is becoming a larger portion of the wools that we
handle through the warehouse. In fact, it was very difficult to even find
a buyer for blackface wool until the final quarter of the year. There are a number
of reasons why we are seeing a shift to more defect wools. Many sheep producers are
placing a larger emphasis on the meat aspect of their sheep business since this is
the main income-producing portion of their flock. Club lamb flocks in the mid-west
have a high degree of black-fiber sheep. Many flocks are looking at niche markets
and at introducing hair breeds to their traditional flocks and this is producing
a kempy wool that is of no value to the industry at any level. A fourth
reason is the increased use of large round bales which contaminate the necks
and backs of the sheep with vegetable material. The bottom line is that there
is less emphasis on wool improvement at the producer level and we are seeing
it in the warehouse.
This is not to say that all wools we receive are not well prepared. Many
producers follow the procedures that were developed by the American Sheep
Industry Association and endorsed by Mid-States in quality wool preparation.
This means that all defect, bellies and tags are sorted out of the main fleece
and bagged separately. We also see producers that sort their sheep prior to
shearing and bag blackface and whiteface wool separately. This type of wool
management makes grading much easier and results in a higher return to the
grower.
It appears that uncertainty will be with us as we begin the 2008 marketing season;
however, we continue to be optimistic that a strong market is still out there. The
Australian wool market in the past month has moved higher due to fears of a
smaller offering at auction during the second half of their marketing year.
Another factor in favor of the United States has been the weak US dollar. This
has made US wool easier to export and more competitive on the world market.
As in the past, the best thing you, as a producer, can do to improve your wool
income is to shear before lambing, use hay feeders that reduce contamination, keep
pastures clean of burrs and mud holes and provide a clean shearing area the day
of wool harvest. Wet wool should never be shorn at any time. Bagging whiteface
separately from blackface and pulling bellies and bagging them separately also
helps returns. We did continue to receive wools during 2007 that are very
difficult to sell. Namely, these include kempy (hair) wool, poly-contaminated
wool, and wet wool. These wools have basically no value in the market place
and will be severely penalized in price during the 2008 marketing year.
These are all controlled by management at the producer level.
If you have any questions about marketing your 2008 wool clip through Mid-States,
feel free to contact us. Call Alex in Kansas at 620-663-7147 or Stanley in Ohio at 614-837-9665.
VAN NOSTRAN ANNOUNCES RETIREMENT
Don Van Nostran, General Manager of Mid-States Wool Growers Cooperative has announced his
plans for retirement effective July 1, 2008. Van Nostran has served as the general
manager of the cooperative for the past 19 years. Mid-States grades and markets wool
and sells sheep supplies domestically and internationally for sheep-producer members
of the cooperative.
During his tenure, the Mid-States Cooperative was able to adapt to the changing wool
industry as the industry left the United States and relocated in China, India and
Eastern Europe. As many domestic mills closed their doors, the Mid-States
organization was able to construct a new, technologically advanced grading
warehouse in Ohio, utilizing under-used assets owned by the cooperative to pay
for the building and grading system. This new warehouse has positioned the
90-year-old cooperative to better serve the US sheep producer; it furnishes
sheep producers with services to make their wools marketable to all types
of customers worldwide.
In addition to the wool division, Mid-States also has a sheep-supply division in both
its Ohio and Kansas warehouses, a small retail clothing division, and an investment/real
estate division. This diversification has provided the cooperative with the staying
power to be able to adapt to changes in the sheep industry, and will prepare it to
serve its members for many years to come.
The Board of Directors of the cooperative has formed a search committee to
select a new general manager for Mid-States. The committee consists of
Jim Brandt, Chairman, Ohio; Gary Erickson, Iowa; Kevin Coan, Nebraska and
Dallas Hiebert, Kansas. Experience in the sheep or wool industry is desirable.
Those interested in applying for the position can contact Mid-States Wool Growers,
Jim Brandt, President, at 419-629-1188 or 937-658-3119 for an application.
Copyright © 1999-2006 Mid-States Woolgrowers Cooperative Association
9449 Basil-Western Road, Canal Winchester, Ohio 43110
1-800-841-9665 |
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