Crossbred wool producers have an opportunity to add to their depressed market prices, as long as they are prepared to meet the strict criteria of Responsible Wool Standard programs.
This is according to wool industry analysts who claim sizeable premiums in the order of 30-40 per cent.
Currently, the already struggling market has had to deal with the repercussions of South Africa unable to export to China.
This presented an opportunity for buyers to purchase cheaply out of SA and send to Europe processors.
Mecardo managing director Robert Herrmann said Australia's sheep industry swung to crossbred wool production after graziers opted towards producing prime lambs over Merinos.
And at that time, the market was travelling a more positive path for broader wools.
"When the swing began, the crossbred wool market was a lot stronger. Producers had the double incentive of strong crossbred prices and strong meat prices," Mr Herrmann said.
"That crossbred market has really fallen away, but it is very difficult to put a finger on why it has.
"It's not really an over-supply situation in context of world demand, but the reality is that it has fallen, it has remained flat and there doesn't look like there is any positive movement in it."
However, Principal of Independent Commodity Services Andrew Woods said premiums are offering a way to add to the lagging crossbred wool prices.
"There are some big premiums being paid for RWS accredited wool both in the Merino and crossbred clips," Mr Woods said.
There are some big premiums being paid for RWS accredited wool both in the Merino and crossbred clips
- Andrew Woods
"The supply of RWS wool is not large and, with SA not selling last week and the Argentine supply waiting for new season shearing in the spring, there are limited avenues to purchase this type of wool around the world.
"Hence the big premiums being paid."
RWS are quality assurance programs that can apply to wool from any type of sheep.
Mr Woods said the RWS premiums which have appeared for Australian crossbred fleece in the second half of the season match the premiums seen paid for New Zealand RWS crossbred fleece paid during the first half of the season.
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"The RWS premium is generally between 100-150 cents per clean kilogram for the 25.5 to 32-micron categories, picking up a majority of the crossbred wool range across Australia," Mr Woods said.
"For the broader crossbred fleece categories, these are sizeable premiums in the order of 30-40 per cent.
"The presence of RWS premiums offer a way to add to crossbred wool prices, which are depressed, particularly the 27 to 31 micron categories."
He said the premium looks to be applied as a fixed premium of 100-150c per kg, with some scope of improving on this with the addition of Authentico accreditation to RWS accreditation.
The RWS is a voluntary program that helps sheep farmers meet consumer, retailer, and brand demands.
The standard certifies they meet rigorous animal welfare and land management requirements.
Mr Herrman said there is growing demand for this type of product from the customer against what is at the moment, a constrained supply.
And he said the future for fibre end-brand products that use these sort of sustainability programs attached to their products is only going to increase.
"Those that have have been around the wool market for a long time are probably a little surprised by how significant and how much impact these RWS programs have had," Mr Herrmann said.
"Previously they had struggled, this has been a really welcome market signal for those people that can meet the criteria.
"It now depends on the producer's appetite to be more connected with the client.... with the customer down the line."
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