Sheep Industry News February 2024

Innovative Topics Lead Wool Discussions HEATHER PEARCE D iscussion at the Wool Roundtable meeting during the ASI Annual Convention on Jan. 12 in Denver centered around innovation. From wool pellets to $30 million grant to a partnership of entities looking to develop climate-smart wool and cotton production in several areas of the United States. Fibershed’s Mike Conover and the National Center for Appropriate Technology’s Linda Poole joined the Wool Roundtable virtually to provide an update on the pro

sponges to climate beneficial programs and manufacturing, American wool producers are finding new ways to do more with less. Since 1995, domestic mill consumption of wool has de creased from 142 million pounds to 10 million pounds due to global competition, trade agreements, the use of synthetic fibers and improved manufacturing. Approximately 60 to 65 percent of the American wool clip is now exported, but domes tic mills are more efficient than ever before thanks to long-term investments in new equipment that compliments the historic machinery still in use up to a century after it was first put into production, according to ASI Consultant Mitch Driggers. Innovators such as Albert Wilde are taking American wool into the realm of regenerative agriculture while building a mar ket for coarser wools that are often difficult to sell. His Wilde Valley Farms developed a pelleted wool product that can be used in gardens, flowerpots and more. “Wool is the only soil amendment in the world that solves all three problems that growers face when caring for their plants [high nitrogen, holds water and softens soil],” Wilde said. The company is introducing American consumers to a whole new side of wool as it reaches retail markets around the United States. California’s Marie Hoff has found similar success putting wool to use in household sponges. She developed a practical, everyday dish sponge that can be ordered online and is also starting to find a home in retail outlets in her area. The sponges provide consumers with an environmentally friendly product that utilizes a readily available and abundant supply of coarse wool and, ultimately, generates revenue for wool growers. Wool Marketing Assistance Loan and Loan Deficiency Payment program options were shared by Jake Vuillemin, economist at USDA FPAC-BC. MALs provide producers with interim financing via a nine-month loan. Producers can pay back the loan at the set rate or forfeit the wool, and if prices deteriorate, producers can pay back less than what they bor rowed. Alternatively, LDPs offer a direct payment. Ungraded LDPs ($0.40/lb. greasy) are the most popular, but many options are available to fit producers’ needs. Last year, the U.S. Department of Agriculture awarded a

gram as it hits the ground running in 2024. The goal is to develop lands that are more productive and drought resistant with higher quality forage to produce healthier sheep and higher quality wool. Producers in California, Montana, Wyoming, South Dakota and New York State can visit FiberPartnership.NCAT.org/ to learn more. Delving deeper into the possibilities and challenges of in novating with wool was ASI Consultant Roy Kettlewell. While wool has great eco-credentials, it faces an uphill battle with en vironmental footprint assessments such as the EU PEF assess ment, which is biased toward synthetic fibers. Still, wool’s scales can be used for felting and creating texture, density and wind resistance. Wool’s crimp creates bulk without weight, warmth without clamminess, Kettlewell said. Rounding out the meeting was Isak Staats, the International Wool Textile Organization Market Intelligence Committee chairman. Australia remains the largest producer of clean wool, making the country a dominant player in the market. Staats said Australian producers are faced with high interest rates and low commodity prices, so expect that they will prioritize wool production. Manufacturing – particularly in Germany – continues to face challenges. Fortunately, shipping rates have decreased, benefiting producers and consumers. Major consumer markets include Europe, America and China, much of where inflation is an issue. However, interest rates are expected to decrease, meaning that consumers might find some relief. Wool makes up only 1 percent of all textiles, meaning con sumers buy wool with discretionary spending. According to the European Central Bank, the probability of an economic reces sion has reduced from 60 percent to 25 percent in the next six to 12 months. Future challenges include climate change and the need to prove wool’s sustainability credentials, which continues to grow in demand. In conclusion, Staats said, interest rates will be a big driver moving forward, supply will come under pressure and indica tors point toward increasing wool prices. “Baring anything major happening, I think we are mov ing into a better world for our product in the short term,” he concluded.

February 2024 • Sheep Industry News • 13