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Wool industry statistics from 2004
Summary
90 per cent of the wool industry in the AlpValleys region is located within the Shires of Towong and Indigo and the Rural City of Wangaratta. The industry contributes through the production of wool and having significant flow on effects in employment and associated industries. Whilst flock sizes and production fluctuates annually with climatic and market conditions there are no major opportunities or impediments within or outside of the region, threatening significant change within the industry.
North East Region |
1996 – 97 AG Census |
2000 – 01 AG Census |
2001 – 02 AG Survey |
Gross value of wool production |
$8,902,397 |
$9,603,909 |
$10,576,801 |
Wool production (kg) |
1,585,803 |
1,663,801 |
1,557,266 |
Contribution to Victorian GVP of commodity |
1.7% |
1.9% |
|
Contribution to Australian GVP of commodity |
0.3% |
0.4% |
|
Estimated number of farms |
524 |
477 |
|
Source: ABS Agricultural Census 1997 and 2001, Agricultural Survey 2002 and 2003
Wool industry overview
Detail |
Comments |
Product description |
Unprocessed wool. |
Main season |
Peaks in the season fall between the months of October to March. |
Industry associations |
Best Wool, Victorian Farmers Federation, Australian Wool Services Ltd, Australian Wool Processors Council. |
Domestic market information |
Producer's wool sells from anywhere between $5 and $32 per kilogram. |
Export market information |
Respondents stated that anywhere between 30% and 100% of their wool was exported to Asian countries including China, Japan and Singapore. |
Source: AAVAF Survey 2004
Location of the wool industry within the AlpValleys region
2001 Ag Census |
% of GVP |
% of production volume |
% of farms for commodity |
North East Region |
Victoria |
North East Region |
Victoria |
North East Region |
Victoria |
Alpine Shire |
2.0% |
0.4% |
2.2% |
0.04% |
1.8% |
0.07% |
Benalla |
9.1% |
0.17% |
8.5% |
0.14% |
7.9% |
0.30% |
Indigo Shire |
21.5% |
0.41% |
20.0% |
0.33% |
25.3% |
0.98% |
Towong Shire |
23.2% |
0.44% |
24.8% |
0.42% |
24.8% |
0.96% |
Wangaratta (RC) |
37.9% |
0.72% |
38.4% |
0.64% |
36.1% |
1.40% |
Wodonga (RC) |
6.4% |
0.12% |
6.2% |
0.10% |
4.1% |
0.16% |
Source: ABS Agricultural Census - 2001
Projected wool industry growth
Source |
Indicator |
Comments |
(ABS) AG Census and survey data |
Growth in production volume 1997 to 2001 |
Output of wool has increased over the two census periods by 5% from 1, 585 tonnes in 1997 to 1,664 tonnes in 2001. |
Surveys |
Current profitability |
Ranged from satisfactory to very low with one response stating very high profitability who undertook a substantial secondary horticultural activity. |
5 year business plans |
Most reported little or no change in plans. |
5 year business outlook |
Almost all respondents stated they expect a satisfactory 5 year outlook. |
Business planning / budgeting |
More than half of the shearers surveyed draft formal business plans, ranging from 1 year plans to 5 plus years. |
Age of producers |
Ranged evenly between the age brackets: 40 to 49, 50 to 59 and 60 plus years. |
Capital expenditure 2002-03 financial year |
Represented between 0% and 90% of gross income, and ranged from between $1,000 to $300,000. |
Wool industry labour requirements
Detail |
Labour requirements of those producers surveyed lean towards part time and casual labour, with between 1-6 part time and 1-5 casual employees. Two respondents required one full time employee each. |
Areas of indirect employment |
Suppliers, transport providers, buyers - brokers and wholesalers. |
Labour market issues |
One respondent from Benalla stated a difficulty in obtaining a shearer or shed hand. |
Wool industry marketing activities
Detail |
Comments |
Marketing undertaken |
Stock agents are a key source to of market information to wool producers, such as Homes Y Sackett and Corcoran Parker. |
Value adding activities |
None. |
Labels and brands |
Quendatte Wool, EH Strathbogie. |
Wool industry strategic advantages and opportunities
- Transport infrastructure and road network, accessibility to markets and major cities, proximity to most services and strong telecommunications.
- Reasonably reliable rainfall and good climate.
- Capital gain on land
- Respondents stated marketing for wool as an area in need of improvement.
Wool industry strategic disadvantages and impediments to growth
- Price of wool and reliance on unpredictable export markets, couple with high running costs result in generally low levels of profitability for wool producers.
- Lack of education programs suitable to the needs of individual farmers, with some farmers surveyed reporting their skills base as a limitation in the development of their agribusiness.
- Labour availability (shearer/shedhand).
- Level of government regulation and charges placed on wool producers.
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