The costs incurred in shearing crossbred sheep are starting to seriously impede the profitability of sheep farming, ANZ’s latest Agri Focus report says. Returns were "absolutely dismal" and that situation was unlikely to improve significantly until existing stocks had cleared, the report said. Wool had built up throughout the pipeline with in-market stocks elevated, local wool stores full and product starting to pile up in wool sheds. Wool carpets were generally still expensive relative to synthetic carpet which would make selling wool products even more challenging as global economic conditions imploded. "This environment will certainly test the marketing skills of those selling fine wool products to consumers.

Source: Otago Daily Times June 14, 2020 16:30 UTC