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This blog aims to keep farmers up to speed with key business developments and provide a perspective on what's going on beyond the farmgate.
Be it changes in commodity markets, movements in exchange rates, corporate news or international trade policy, I''ll be keeping tabs on it, providing a rapid assessment of what it all means for farmers.
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Further to your article "On the new Wool Project" 29/1/10 Farmers Weekly.
I would just like to say that your information on wool prices to the farmer is misleading and the majority of wool producing farmers would not agree with your comments.
First of all I would suggest average fleece weight is more like 2 kgs. You quote the farmer would receive 66p/kg for the wool, this is not correct as you are quoting the average price made at auction taken from Wool Board information. What you are not mentioning is that after the Wool Board take away their exorbitant overheads which are between 32-35p/kg what is left is what is shared out to the wool producers. This is far away from the 66p/kg you indicate that they receive.
In a recent Sunday newspaper article entitled "Fleeced" it quoted the extremely high salaries (some in the 6 figure brackets) being paid to Wool Board employees while the poor wool producing farmer suffers and pays for these.
It is true what you say that the life-line they have, is that they are enjoying good prices for their lambs, otherwise there is no return for all the hard work they have to do as a sheep breeder.