Use the NWD to attract the highest price

The National Wool Declaration (NWD) enables woolgrowers to communicate directly with prospective buyers, processors and retailers; and them send key wool market messages back to woolgrowers.

Whenever AWI discusses the Australian wool industry’s animal welfare with brands and retailers along the supply chain, they invariably say that they would very much like all Australian woolgrowers to declare their wool through the NWD; it creates two-way transparency and choice in the marketplace.

Once a woolgrower has completed the NWD, which is voluntary, the contents are converted for inclusion in sale catalogues and test certificates. All woolgrowers are encouraged to complete the NWD, regardless of their sheep’s breed and wool type, and husbandry practices.

Table 1. NWD declaration rates (%) by Mulesing Status and state for season 2022/23

Table 1 shows that Queensland woolgrowers top the list for declaration rates at 86% of wool sold in 2022/23 followed by Tasmanian woolgrowers at 83%. Queensland was the least declared in 2010 (30%) but now is the highest declared state in 2022/23.Tasmanian and Queensland woolgrowers also top the Non Mulesed (NM) categories at 43% and 40% of wool sold (which has been the case for a long time). These two states have the most NM wool as the risk of flystrike is lower, the weather in Tasmania is cool and Queensland hot with much shorter fly seasons.

Table 2 shows that Merino breeders with lower micron wool, less than 18.6 microns, are more likely to declare, with only 18% of wool sold not declared.

Table 2. NWD declaration rates (%) by Mulesing Status and breed/micron (μm) for season 2022/23 

From a financial perspective, Table 3 shows that woolgrowers usually receive premiums for wool declared as Non Mulesed (NM) or Mulesed with Analgesic/Anaesthetic (AA). This is a greater issue for WA woolgrowers as their declaration rate is about 54%, lower than all the other states that range from 77% to 86% wool declared.

The premiums for NM wool in 2022/23 were lower than the previous year which may be due to a more volatile market. (Note the AWEX data does not include wool sold direct from woolgrowers to woolbuyers.)

Wool sold as Not Declared (ND) usually receives a Discount compared to wool that is declared as Mulesed (M). These are the averages over the selling year and if you do mules, it would likely be financially advantageous for you to complete the NWD and declare your wool as Mulesed (M), rather than not complete the NWD. The size of the discount is increasing over time, with 16 and 17 micron wool most discounted.

The message is clear. To ensure your wool attracts the highest price possible, you need to ensure that your wool for auction is accompanied by an NWD.

Table 3. Premiums and Discounts for Mulesing Status (c/kg clean) for seasons 2015/16 and 2020/21-2022/23 (comparison with declared as Mulesed) 

Source: AWEX

Criteria for calculation of Premiums and Discounts (c/kg clean) for Mulesing Status:

• Australian stored; Merino adult/weaners and crossbred fleece
• >30 N/ktex, >60% Schlum Dry, <2.2 VMB, Styles 4/5, Good/light colour (incl. H1), P Certificate
• Lengths according to diameter range: 70–95 mm (<18 µm), 75–99 mm (19–21 µm), 83–104 mm (22–24 µm), 90–110 mm (26–29 µm), 100–130 mm (30–34 µm)
• Records per group (micron/NWD status) >2, empty cells when not enough data to generate a P or D.
• Comparison with prices for wool declared as Mulesed.

More information: www.awex.com.au/market-information/mulesing-status/

This article appeared in the September 2023 edition of AWI’s Beyond the Bale magazine. Reproduction of the article is encouraged.