MercoPress. South Atlantic News Agency

Melbourne wool sales offer a ray of hope for Falklands farmers

Wool sales held in Melbourne Australia on October 31st saw prices peaking higher than for some years and offered a ray of hope to Falklands farmers.

Speaking on the Falkland Islands Radio Station (FIRS) on October 31st, Government Senior Agricultural Advisor, Neil Judd said that the day's marketing reports showed "a lot of demand". The wool market, he continued, had shown in previous weeks "a lot of enthusiasm" for wool between 20 and 24 micron, but in this week's sales that enthusiasm had extended to broader wool, with 26 micron also being in very strong demand.

Mr Judd said that while it was difficult to attribute the rise in interest in wool to any one factor, there were a number of circumstances which could be combining to stimulate market demand; Australia was, he said, in the middle of a very serious drought, which with the advent of summer was likely to continue, bringing with it an attendant shortage of supply of wool to the markets.

Prices were rising quickly as processors in China, Europe and India were beginning to fear that the supply of wool, particularly from Australia, would not be sufficient to cope with the strong consumer demand created by successful marketing initiatives. said Mr.Judd. There was demand for product, but a serious question over supply.

Asked what the consequences would be for wool producers in the Falkland Islands, Mr.Judd said that at the start of another shearing season, Falklands farmers could look forward with a little bit more hope than even six weeks ago that prices were moving "in the right direction"

John Fowler (MercoPress) Stanley