Wool comeback boosts land value – RURAL: [1 Edition]
Stapleton, John. The Australian [Canberra, A.C.T] 16 Feb 2001: 41.
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Abstract
The chairman of the Wool Committee with NSW Farmers Duncan Fraser runs 7000 sheep on 10,000 hectares of flat saltbush plains on his property Narringa south-west of Hay in western NSW. He said the wool industry had gone through several low periods in the past decade, with recovery led by fine wools only beginning 18 months ago.
“Now the stockpile is down under half a million bales, which is really only the equivalent of five weeks through the auctions, wool buyers realise they have to pay more to get the wool they want.”
“The wool prices are leading the values for prime wool producing properties,” said Bob Sherwell, Victorian rural property specialist with Elders. “Eighteen months ago we couldn’t get any interest in wool-producing properties. Prices weren’t any good and people were reducing stock numbers.
Full Text
COUNTRY MATTERS
SUDDENLY the description “wool property” is no longer the kiss of death.
Eighteen months ago the industry and its associated property market were in the doldrums and heading further south.
No longer. Confidence among the nation’s woolgrowers continues to rise with improving prices and better demand from key overseas markets. Wool prices have jumped 6 per cent since the beginning of the year.
Australian Wool Innovation this month reported demand from Europe and China for wool was strong despite slowing economic conditions.
In Australia, wool prices, particularly in the middle-micron range, have climbed.
WoolStock Australia has reported that the Australian wool stockpile is under 500,000 bales after peaking at four million in the early 1990s.
The chairman of the Wool Committee with NSW Farmers Duncan Fraser runs 7000 sheep on 10,000 hectares of flat saltbush plains on his property Narringa south-west of Hay in western NSW. He said the wool industry had gone through several low periods in the past decade, with recovery led by fine wools only beginning 18 months ago.
“Because the industry was so down for so long there is caution about the price increases,” he said. “But there is optimism that finally the supply and demand are coming back into balance.
“Now the stockpile is down under half a million bales, which is really only the equivalent of five weeks through the auctions, wool buyers realise they have to pay more to get the wool they want.”
Mr Fraser said some woolgrowers dropped out of the industry altogether or changed enterprises. Properties with irrigation water from the Murrumbidgee were insulated from the wool crisis.
“Those who could get into rice did so,” he said. “Everyone who could diversified into cattle or crops. But for those who stuck to sheep, they had to really pull their belts in. Those still going after 10 difficult years are fairly optimistic.”
Land values were still only 70 per cent of what they were 10 to 12 years ago, when wool prices were at historic highs.
In western Victoria, renowned as a centre of fine wool production, property prices are starting to recover.
“The wool prices are leading the values for prime wool producing properties,” said Bob Sherwell, Victorian rural property specialist with Elders. “Eighteen months ago we couldn’t get any interest in wool-producing properties. Prices weren’t any good and people were reducing stock numbers.
“Now the word wool is starting to be mentioned again. Most people buying rural properties these days look for a diversified property with more than one income stream.”
Talgarno Park, at 760 hectares, is located at the foot of the Grampians in the Victoria Valley in the western part of the state. Giant red gum trees dot theproperty, which has magnificent views to the rugged ranges nearby. Elders expects the property the fetch around $850,000.