Now that can be taken in more than one way.
Recent global auction results are signalling the demand for all product dairy are back in demand and corresponding price stability is returning.
The New Zealand economy now depends on a strong stable result from cows eating grass in paddocks and making milk.
Back in the early 1950s it was wool that propelled a return to profitable trading for his island nation favoured to grow grass but at the mercy of location, following fears of another world war leading to a temporary return of demand for wool for military uniforms.
A spike that saw Sheep meat, which NZ was a significant exporter of enjoying excellent allied returns, I received four pounds for my pet lamb in 1952. The weekly wage for a labourer was around ten pounds at that time
Recent headlines have been slightly encouraging for wool, the trading demise of which is a fascinating conundrum. A wholly sustainable natural fibre with many and varied uses and advantages of low fire risk, with excellent aptitude for dealing with moisture and warmth, languishes, as harvesting costs make it a cost center for ovine meat production, oh yes Merino wool still is profitable, just.
However in a world obsessed with carbon nonsense, wearing and walking on fabrics manufactured from oil based product, eschewing wool in all its forms, can anyone make sense of the way wool is left to perish.
The North Canterbury Rotherham school recently the target for derisive commentary in an ignorant media for including feral cats in a fund raiser noxious pest assault, refused to install NZ Education Ministry funded synthetic carpet, using some of the deadcat fund to buy more expensive wool floor coverings?
Rotherham, slap bang in the center of a sheep farming arena where “The Amuri Wool Kings” once reigned supreme is now almost entirely a large Dairy farm sustained by the Irrigation scheme developed in the nineteen seventies as Border dyked farming over much of the flat arable land, now converted to spray irrigation from a Piped scheme that uses less water, covers more land and grows green grass.
New Zealand’s wool production of strong wools largely used in carpet and furnishing trade is facing a significant challenge as shedding breeds such as Wiltshire, gain acceptance to avoid shearing costs. Another contributor to this now threatened fibre comes from incorporation of new breeds seeking fertility and muscling such as Finn, Friesian, Texel that result in poorer quality wools.
The once dominant Romney is rapidly being expunged from sheep meat production, a fate that befell the once world leading Corriedale, bred from crossing long wool lincoln and leicester with merino to reach a dual purpose meat body with finer wool. A breed now largely consigned to history and hobby farming.
Protectionist policy from urban voted politicians who normally just adore being signatories to market idiocy such as Carbon zero are ominously silent when ignoring natural wool and merely stand aside while big pharma exploit oil based fibre production for profit. They just cannot see the hypocrisy.
Unfortunately, wool is a useless bye product of meat production.
Being a shearer , a complimentary product to wool, probably has a short future as well. Its very hard work, demographics are against it and if sheep are evolved to no wool, shedders, or very short strands, then a shearing robot is just around the corner.
Overheard 4 station owners chatting last year at the Waipakurau fly in about the state of the wool industry. Like their fathers they had stuck it out and were now lamenting their decision, $5000 to shear and $1,000 return.
They also laughed off the latest scheme to save wool by the imposition of a marketing levy for some new-fangled scheme that they knew was assured of failure.
The market is a tough mistress. Oil is here for at least another 2-3 generations, and until relative prices change there is no hope, except for niche products, eg Ice Breaker.
Breeding developments and technical change in shearing may offer some alleviation.
Clearly reducing the sheep fleet back towards world demand levels for all its products has been beneficial.
One might even ask what the Russian and Chinese armies wear, Now if wool reduced the infraed signature back to cool then there maybe a large market but our allies might not be so keen.
I’ve pointed this out before but if China hits the skids it’s not going to be good for the Dairy payout.
Now this latest economic news from China, where a number of estimate put their unoccupied dwellings at perhaps 100% of the population, a massive overbuilding that is beyond the famous “ghost cities” of China.
I can confirm from the central Anatolian plateau of Turkey that Turkish & Belgian textile manufacturers are bringing back wool rugs with Jute base. There is market demand for sustainable natural non petroleum product.
the market is a harsh mistress but demands change.