Wool Prices Research Articles

Biophysical and Agroeconomic Influences on Pasture Quality in Da'erhanmaoming'an Union Banner, Inner Mongolian Autonomous Region, China

Since the economic reforms of the late 1970s, China has implemented a number of initiatives designed to stimulate local economies and protect environmental conditions in its rural western provinces. An area of particular concern is the Inner Mongolian steppes, which lie northwest of Beijing and are both economically depressed and a major source of dust storms. This work combines Advanced Very High Resolution Radiometer (AVHRR) imagery from 1985 to 2005 with annual and seasonal precipitation data and socioeconomic parameters collected at the township scale to investigate the relationships among husbandry activities, grassland health, as indicated by imagery-derived Normalized Difference Vegetation Indices (NDVI), and price data for wool and cashmere, the two major products in this area. Da'erhanmaoming'an Union Banner in southwestern Inner Mongolia was used as a study site. As expected for this arid steppe region, the results indicate a strong dependence on seasonal precipitation. The shift from sheep to goat production had a negative impact on grassland quality over time, but positive effects on income. Herd composition and size, along with market prices for wool and cashmere, were also correlated with per capita incomes. These results point toward a need to regulate the number of grazing animals in general, with restrictions on the number of goats being of primary importance.

THE CURRENT SITUATION IN RABBIT PRODUCTION IN HUNGARY

At present slaughter rabbit production in Hungary is 6 651 tonnes - less than half of that achieved in the peak years of 1982 and 1991. In 1998 live rabbit production amounted to a total of 13 903 tonnes. This production is exported in its entirety; there is practically no rabbit meat on the domestic market. Previously approx. 90% of rabbits slaughtered were sold to ltaly. At present ltaly accounts for 65-70% of Hungarian rabbit exports and Switzerland for 20-25%. The export of live rabbits practically ceased in 1986. In 1998 export shipments comprised 68% whole carcasses and 32% meat products. The majority of Hungarian rabbit abattoirs are now under foreign ownership or involve foreign partners. The abattoirs work on a one-shift system, at 50% of their shift capacity. Previously 95-98% of rabbits for slaughter were produced on small farms with 5-15 does. Now two abattoirs operate large-scale farms with 10,000 does, and there are approximately 60-70 medium-sized farms with between 100 and 3,000 does; 26% of meat rabbit purchases now originate from commercial production farms.Angora rabbit production reached its peak in 1988. With an annual output of 190 tonnes of Angora wool, Hungary was then the largest exporter in Europe. The dramatic drop in wool prices has forced production down to a sales level of approximately one tonne per year.

Genetic improvement in the Australasian Merino – management of a diverse gene pool for changing markets

SummaryThe Australasian Merino population has declined significantly over the last 15 years in response to a decline in the price of apparel wool, both in absolute terms and relative to the price of sheep meat. Over the same period, a national genetic evaluation system based on BLUP methods has been introduced, that is achieving steady growth in adoption by breeders. Genetic parameter estimates for the population provide evidence for considerable genetic diversity for all recorded traits, providing ample opportunity for genetic improvement. More recently, there is considerable evidence for increasingly rapid progress, both in fleece traits and a range of meat production and adaptation traits. The Merino population is evolving towards two broad types – one focused on high quality apparel wools finer than 19 µm and used in enterprises with a wool/meat income ratio of about 3:1, and the other a more dual-purpose animal producing 19–21 µm wool and an enterprise wool/meat income ratio between 1.5:1 and 1:1. Underlying these trends is a growing focus on adaptation traits including worm resistance; reduced need for veterinary interventions; and increased early growth, fertility and mothering ability. Together these trends point to increasingly ‘easy-care’ sheep and exploitation of the available genetic diversity to rapidly increase profitability.

License to till: The privileges of the Spanish Mesta as a case of second-best institutions

The Mesta was the association of the migratory shepherds of Castile, controlling fine wool production between the thirteenth and the nineteenth centuries. Its royally granted privileges have often been blamed for the stagnant Spanish agricultural productivity during the early modern period. I argue that the Mesta’s privileges allowed Medieval Castile to develop its comparative advantage in wool, and that the Crown was able to restrict their scope and application when economic conditions favored arable farming interests. I support my argument with extensive archival data, including a new series of wool prices and a detailed analysis of lawsuits involving the Mesta.

Estimates of economic values for traits of Arabic sheep in village system

A deterministic bio-economic model was used to estimate the economic values of different traits in Arabic sheep native to the Khuzestan province of Iran. In the studied system, variable costs accounted for about 98.5% of the total costs and among variable costs, feed costs had the highest proportion with 70.7%. Revenue sources included meat, wool, and manure, where meat was the most important one and formed 95.5% of total revenues. Economic value for a trait was estimated as the amount of change in the profit of system as its mean increased by one unit, while the means of other traits were constant. The most important trait in this system was litter size, followed by ewe survival, dressing percentage, and wool weight, respectively. Birth weight had a negative economic value but weight at older ages especially weaning weight and 12-month weight had positive economic values. The sensitivity of economic values of traits was investigated by changing feed and non-feed costs, meat and wool prices by ±10%. Results showed that economic values for dressing percentage and wool weight are not sensitive to change in costs. In addition, changes in marketing and management costs had no effect on the economic value for traits related to body weight in different ages. In general, the economic value for traits which showed sensitivity to the changes of costs, except ewe survival, decreased due to an increase in costs. The economic value for all traits, except birth and wool weight, changed because of a change in meat price. Increasing meat price meant a higher economic importance. Among different factors, meat price fluctuations had the most effect on the economic value of traits.

Comparison of three systems for concurrent production of lamb meat and wool

Abstract An innovative lamb-feeding facility with a raised-slatted floor (RF) was designed and built for the purposes of concurrently producing high-quality, high-value wool and large, lean lamb carcasses. A ration was formulated to provide a low rate of gain in order that lambs attained slaughter weight (59 kg) when they were approximately 12 month of age because a 12-month fleece is a prerequisite for high value in the targeted hand spinning niche wool market. A study was conducted to compare production and quality of wool and meat and associated economics of feeding lambs housed in the RF system versus two conventional systems, a feedlot (FL) and supplementation on pasture (P). For this purpose, 143 5-month-old, male, castrated Rambouillet lambs were obtained and assigned to a production system. Half of the lambs in the RF and FL systems were fitted with protective coats. As planned, daily gain was greater and days to slaughter were less in the FL versus the RF system, with P being intermediate. Final shorn bodyweights were similar in each system, but RF dressing percentage was considerably lower than those in the FL and P systems. This anomaly was likely due to the greater gut fill of RF lambs compared to those in the other two systems. Leaner carcasses were produced in the RF and P systems compared to the FL system. The RF fleeces were heavier than those produced in the FL system with P fleeces being intermediate. Average fiber diameter and variability did not differ among treatments. Though considerably longer than FL staples, wool produced in the RF system was more uniform (CV%) in terms of fiber diameter measured along the staple length. Importantly, coats did not affect rates of gain in either the FL or RF system and had minimal effects on other measured properties. Coated fleeces were only arithmetically higher yielding than uncoated fleeces (55.2% versus 53.4%), but the coated fleeces were visually cleaner and brighter than uncoated fleeces, which is very important for the targeted niche market. Price obtained for coated RF wool sold into a niche market was five times higher than conventionally marketed FL and P wool prices. Net income per head was negative for all three systems (−US$ 0.11, −US$ 2.20, and −US$ 5.57 per head for FL, P, and RF, respectively). In this study, the substantially higher returns from the niche wool market did not compensate fully for the extra cost of production and the extra effort required for niche marketing.

A time‐varying beta approach to measuring New Zealand's country risk

PurposeThe purpose of this paper is to estimate New Zealand's country level risk using a time‐varying country beta market model. Country beta is allowed to vary as a function of several macro‐economic variables, including the net government overseas borrowing, 90‐day bill rate, ten‐year bill rate, wool price, trade‐weighted index, manufacturers’ price index, retail trade, current account balance, and money supply.Design/methodology/approachMultivariate regression analysis is used to test the relation between country volatility and the macro‐economic variables for the period September 1985 to March 2000.FindingsIt is found that the US dollar exchange rate (USD) and the monetary conditions index (MCI) have a significant impact on New Zealand's country beta. The temporal variance of New Zealand's country beta displayed a great deal of volatility prior to and immediately following the 1987 stock market crash. The beta was far less volatile during the 1990s.Research limitations/implicationsThe variable set is restricted by the availability of data concerning the key macro‐economic statistics.Practical implicationsRisk at the country level is of increasing importance in the evaluation of offshore investments. Practical implications relate to the evaluation of investments in foreign markets, specifically the appropriate cost of capital, given increased integration of financial markets.Originality/valueThe study provides a better appreciation of the relationship between the country beta and several macro‐economic variables that has not been applied to the New Zealand economy before.

Designing cropping systems for efficient use of limited water in southern Australia

There has been continuous change in the systems of cereal production in southern Australia where the climate is semi-arid with moderately wet winters and hot dry summers. At the outset wheat (c. 1840) was grown in continuous culture as the land was gradually cleared for cropping, but yields declined to uneconomic levels by 1900. That system was then replaced with fallow-wheat rotations, and using phosphorus fertilizer, yields recovered, but not to the original level. From 1945, the high profitability of sheep production encouraged improvement of legume-based pastures and the introduction of pasture-crop sequences – ley-farming. Productivity was greatly increased and the yield of wheat crops regained the original level. But such were the rates of acidification and salinization of soil that reduced productivity and, in the case of salinity, reduced stream quality and threatened adjacent natural ecosystems. This ley-farming system was used until the late 1980s when prices for wool fell dramatically, and farmers reduced sheep numbers and intensified cropping. The thrust since then has been to design cropping systems that are economically as well as environmentally acceptable with salinity control as the major objective. There is now a search for systems that use more water to reduce drainage through the soil and lower saline water tables. A major contribution is the much restricted use of fallow but summer active plants are also required to provide a soil water storage buffer to retain autumn–winter rainfall. New systems under evaluation include herbaceous perennials such as lucerne that are readily integrated into a crop-livestock system and agroforestry combinations with various trees. The design and appropriate distribution of the new systems is aided by remote sensing techniques to locate areas of saline discharge and linkages to zones of groundwater recharge, geographical information systems to arrange the data for land system analysis, and computer models of crops and cropping systems. There is a substantial challenge for farmers, agronomists and others to identify and assess suitable new systems and to bring the public into the debate and into the solution.

P1170 ALCOHOL WIPES ARE A SOURCE OF ZINC CONTAMINATION: IMPLICATIONS FOR STUDIES ASSESSING ZINC STATUS

Introduction: The assessment of zinc status is not straightforward and may be influenced by contamination during the pre-analytical phase. Potential sources are hair, sweat, and blood collection tubes. Although not the best indicator of whole-body zinc status, serum/plasma zinc is used most often to determine the zinc status of populations. The aim of this study was to determine whether commercial alcohol wipes or cotton wool used to prepare the skin for venepuncture could be a source of zinc contamination. Methods: The alcohol from thirty commercial alcohol wipes each, from a local (LA) and international (IA) manufacturer (same batches), was analysed for zinc content via atomic absorption spectrometry. The isopropynol from three wipes was pipetted into a test tube. Ten test tubes each were thus prepared for LA and IA. Cotton wool balls from five different manufacturers were also analysed for their zinc content. The cotton wool was immersed in 70% ethanol, and isopropynol. Results: The mean (SD) zinc concentration was 1.86 (0.11) ppm and 5.96 (0.14) ppm in 70% isopropynol for LA and IA, respectively; the CVs were 5.9% and 2.3%. The zinc content of all five the cotton wool sources was <0.1 ppm, for ethanol and isopropynol. Price of the cotton wool was not associated with zinc content. Conclusion: The results show that commercially available alcohol wipes are a source of zinc contamination. The South African product had lower zinc content, possibly because of the greater volume of alcohol per sachet. Whether this could lead to elevated serum/plasma zinc levels needs to be determined. Nonetheless, alcohol wipes should be avoided when preparing the skin for venepuncture, where serum/plasma zinc concentrations are to be determined, e.g. studies of zinc and morbidity.

The farmer as conservationist

AbstractAgricultural landscapes are essential for preserving biodiversity, even though agricultural activities are the leading cause of habitat degradation worldwide. About half of the Earth's productive land area is farmed or grazed, whereas only about 6% of the total land area is protected for native species and ecosystems. The ecological services of healthy ecosystems are fundamental to agriculture, and these services depend upon a large number of species interacting with each other and with inorganic nutrient cycles. Likewise, the quality of ecosystems between reserves is critical to the persistence of species and ecological processes within reserves. Thus, conservation-oriented farming methods are critically important for both agriculture and biodiversity. Three examples illustrate agricultural practices that benefit the farmers, the local ecosystem and the landscape: (1) In Minnesota, rotational grazing, evaluated by the collaborative research of farmers and scientists, improved soil, pasture and stream quality, and boosted the confidence of the farmers in developing more sustainable grazing practices. (2) Predator-friendly ranching in Montana, in which nonlethal methods are used to protect livestock from depredation by native predators, benefited the ranchers with premium prices for wool and meat. The persistence of native predators, many of which have been on endangered species lists for years, benefited the regional ecosystem. (3) Shade-grown coffee in Latin America, in which coffee shrubs grow under an intact forest canopy, often looks and behaves ecologically like native forest and may house high levels of native biodiversity. This system benefited farmers, as long as they received a price premium for shade-grown coffee. The economic viability of these conservation-oriented practices depends upon farmers receiving price premiums for their products and by society rewarding fanners for their practices. A vision of ecological farming as the dominant form of agriculture is presented, with benefits at the scale of the farm, the landscape and society.

Genetic parameters of wool colour and skin traits in Corriedale sheep

Clean wool colour (CWC) is an important wool price determinant and has been related to suint characteristics, i.e. sudoriparous and sebaceous gland secretions, such as suint percentage and suint K content. In this work heritability, phenotypic and genetic correlations among wool colour and skin traits were examined. The genetic estimates were assessed by Restricted Maximum Likelihood (REML) procedures using average information algorithm (AIREML) in a Corriedale flock. The traits analysed were wool colour traits (CWC), yellow predictive colour (YPC), and Visual Score; suint traits such as suint percentage and potassium and sodium concentrations in suint, and physiological traits such as potassium and sodium concentrations in the skin, including plasma and red blood cells. The objectives of this study were to assess phenotypic and genetic correlations between wool colour and skin traits, and to find the suitability of these traits as indirect selection criteria for clean wool colour. Suint traits were highly genetically correlated to YPC. Suint K, but not suint percentage, was found to have a high genetic correlation with CWC. Skin K, Visual Score, YPC and suint K were amongst the best indirect selection criteria for clean wool colour. However, selection using these traits was expected to reduce CWC from 52% to 49% of that estimated under direct selection.

Sustainable cropping systems for high rainfall areas of southwestern Australia

Crop production has increased in the high rainfall (400–700 mm annual rainfall) areas of southwestern Australia in response to prolonged poor prices for wool relative to improvements in grain production technology and a desire by farmers to diversify their enterprise mix. The paper defines the higher rainfall region and suggests that approximately 70% of the area is potentially arable. Economic analysis indicates that for a range of grain and wool prices, profitability is maximised if 20–40% of the farm is cropped. So, cropping is likely to remain an important part of the farming system in this region. In southwestern Australia, water draining below the root zone causes saline groundwater to rise and leads to the development of dryland salinity. It is, therefore, important to develop cropping systems that minimise leakage of water past the root zone. The paper concludes that 30% of the farm needs to be in perennial pasture such as lucerne to minimise deep drainage. A rotation of 3 years of lucerne and 3 years of crop over 60% of the farm would meet this target and allow up to 30% of the farm to be cropped. The strategic introduction of trees in cropped areas increases the potential arable area that can be in crop without a rise of salinity. It is concluded that with careful arrangement of annual crops with perennial vegetation, sustainable crop production is achievable in the high rainfall areas of southwestern Australia.

THE SOUTH AFRICAN WOOL SUPPLY RESPONSE / DIE AANBOD RESPONS VAN WOL IN SUID-AFRIKA

The production of wool in South Africa has declined substantially over the past twenty years. This has been a consequence of a number of factors, the most important being the relative decline in world prices, both gradually before the collapse of the Australian wool price scheme, and more abruptly since then. The purpose of this article is to analyse the impact of the changes in the price of wool and some other variables on the supply response of the South African wool industry.

Is Sustainable Tourism Really Sustainable?

Is Sustainable Tourism Really Sustainable?

The long-term influence of superphosphate and stocking rate on the production of spring-lambing Merino sheep in the high rainfall zone of southern Australia

The productivity of spring-lambing fine wool Merino sheep grazing pastures sown in 1977 to perennial ryegrass and subterranean clover was assessed from 1989 to 1998. The pastures were fertilised each autumn with single superphosphate at 6 levels, and were stocked at a low, medium, or high stocking rate (SR) at each level of fertiliser. The average phosphorus (P) applied annually since sowing (P ) ranged from 1.6 to 32.9 kg/ha. The SRs used varied with fertiliser level in that they were higher where more fertiliser had been applied, so that the highest SR at each level of fertiliser ensured that the pastures were well utilised. Each ewe raised 1 lamb, which was removed at weaning. The influence of fertiliser on the productivity of the sheep at 4 classes (1–4) of SR (mean SR = 7.1, 10.1, 12.6, and 18.2 ewes/ha for classes 1–4, respectively) was described by: y = A−BCP, where y represents production per sheep (kg), and A, B, and C are constants. For greasy fleece weight, estimates of B and C were 1.59 and 0.84; and for SR classes 1–4, the estimates of A were 5.06, 4.89, 4.78, and 4.46, respectively. For weaning weight of lambs, estimates of B and C were 8.4 and 0.82, and estimates of A were 23.5, 22.7, 21.5, and 20.9 for SR classes 1–4. The mean fibre diameter (µm) of the wool was described by: D = 14.18+1.48 GW, where GW is the mean greasy wool produced annually per sheep (kg) averaged over all sheep and years for each of the 18 treatments. The price (cents/kg) of wool with a fibre diameter D (P D) was given by: P D = 12197+4.94P2 + 688D−0.1945P20D − 5810√D, where 20 µm wool is P20 cents/kg. Supplements were fed if the body condition of ewes fell to a predetermined level. The supplement fed per ewe each year (S), expressed as metabolisable energy (in MJ) was described by: S = −602 − 44.1S R + 178.5P + 8.71S R P +539 √SR− 338.5√P−70.8P√SR, where S R and P represent the mean stocking rate (ewes/ha) and mean P applied annually. When a current set of costs and prices was applied to these equations, the maximum gross margin for a SR of 7.1 ewes/ha was $AU119/ha with 8.6 kg P/ha applied annually, and $AU262/ha for SR of 18.2 ewes/ha with 17.6 kg P/ha applied annually. If income derived from sheep is maintained constant, intensifying the sheep enterprise from the low to the high SR system would involve increasing sheep numbers by about 17%, but would release about 55% of the farm’s area for another purpose.

Biologically based coefficients for partitioning lamb and wool production costs.

Global competition for selling lamb and wool requires sheep producers to effectively prioritize wool and lamb production. Both products are produced simultaneously, and this makes it difficult to differentially assess costs and net returns. This study addressed this issue by developing coefficients for use in financial analysis of lamb and wool profitability across and within five regions of the United States (Eastern, Midwestern, Intermountain West, Great Basin, and Texas). A procedure was developed using a sheep simulation model to partition the amount of nutrients used for lamb and wool production and then using the partitioning information to determine the proportion of costs to be assessed to lamb and wool production. Blackface breed types, when managed without nutritional limitations, had lamb and wool coefficients of .90 and .10, respectively. Wool breeds with unlimited and limited nutrition had lamb coefficients between .80 and .20 and .60 and .40, respectively. In-depth analysis of the Great Basin system indicated that wool and its improvement may contribute as much, if not more, under certain pricing conditions, as increased prolificacy to enterprise profitability. With low lamb prices ($1.32/kg) and moderate wool prices, the partial net returns for a Merino x Rambouillet were higher than the tested prolific breed type ($13.85 vs $11.27/ewe, respectively). This ranking was reversed under high ($2.31/kg) lamb prices ($47.90 vs $55.22, respectively). The derived method provides a basis for analyzing, comparing, and making management and breeding objective decisions.

The impact of commodity prices and seasonal conditions on the adoption of productive pasture technology during the final 18 months of the Grassland’s Productivity Program

Summary. Nineteen participants in the Grassland’s Productivity Program were surveyed in autumn 1997 to determine whether they had continued to adopt productive pasture practices during the final 18 months of the program. The objective was to determine whether changes in commodity prices in 1996, involving falls in wool and beef prices and increases in prime lamb prices, and unfavourable seasonal conditions, impacted on the continuing adoption of productive pastures by participants of the Grassland’s Productivity Program. Despite the less favourable market and seasonal conditions, the Grassland’s Productivity Program participants continued to increase their adoption of productive pastures, almost trebling the area of land under the productive pasture technology from mid 1995 to 1997. This was achieved by rationalising farm expenditure in ways to cope with the less favourable conditions. The first was to undertake more pasture manipulation instead of high-cost pasture renovation. The second was to maintain expenditure on phosphorus fertiliser but focusing the application on more productive pasture paddocks. As a result the stocking rate across the whole farm was only increased marginally (by 0.2 dse/ha) from 1995 to 1997. Nevertheless the participants predicted that they would increase their stocking rate by an average of 17% across their farms, from 10.9 to 12.7 dse/ha, by the year 2000. The continuing strong commitment to adopt productive pastures is highlighted by the future intention of over half of the Grassland’s Productivity Program participants (53%) to implement the technology over their whole farm. The remaining participants intended to have at least half their farm under productive pastures. There was no discernible difference between wool growers and prime lamb producers in achieving adoption intentions apart from the area of the farm that is sown to productive species. This indicates that a short-term change in enterprise profitability is not necessarily a major determinant of adoption of more intensive grazing practices by participants in this type of group-facilitated program.

Use of MOET in Merino breeding programmes: a practical and economic appraisal

AbstractCommercial application of multiple ovulation and embryo transfer (MOET) technology will be subject to practical constraints and economic rationalism. This study examines use of MOET in its most profitable arena: to breed stud rams which will disseminate genetic improvement widely through multiplier studs to commercial flocks. A deterministic prediction is used to evaluate schemes based on an open nucleus MOET group within a Merino parent stud, taking account of genetic merit and inbreeding. Selection is based on clean fleece weight with an assumed heritability of 0·4. Embryos are collected at a rate equivalent to 3·45 live lambs per donor. Benefits of MOET were calculated from the discounted expressions of rams sold, and compared with the costs incurred.As the proportion of the flock born from MOET increases, the rate of genetic gain increases rapidly at first, but diminishing returns are observed. The costs ofMOET increase linearly with the number of lambs produced, so the optimum proportion ofMOET lambs is for practical purposes always less than 100%.Some use of MOET was profitable provided the stud sells sufficient stud rams each year. Sensitivity tests found that other parameters had only a small impact on the optimum level ofMOET. In general however, changes which increased the rate of genetic gain (heritability, flock size) or increased its value (wool price, lower discount rate) increased the optimum number ofMOET lambs.The results should provide guidelines to optimum investment in MOET for the wool industry. An across flock genetic evaluation scheme is probably necessary to motivate this investment.

THE SUPPLY OF WOOL IN LESOTHO / DIE AANBOD VAN WOL IN LESOTHO

Lesotho is a very small producer of wool (I thousand tonnes per year) and therefore has no influence on world prices and on world wool production. However, the earnings generated from wool exports contribute significantly to the economy, thus making wool an important product. This paper determines the factors that producers consider in their decisions to produce wool. An econometric supply model is developed which hypothesizes the variables that affect wool production. Lagged wool and mohair prices and rainfall are important variables that influence farmers' decisions to produce wool. The previous years' wool production is less important because of the biological lag associated with production. Other variables such as the marketing arrangements of wool and domestic policies might influence farmers' decisions to produce wool but were not considered in detail.

Remembering the price of wool

Seventy people active in the Canterbury wool industry (either as farmers or brokers) and 70 members of the Christchurch general public estimated the present, past (1, 2, 7, and 14 years ago), and future (5 years hence) prices of wool, butter, stamps and general costs. A general tendency to underestimate more recent and overestimate 14-year-old prices was found. The wool industry sample showed systematic bias in the way they remembered past wool prices. Although they had a more gloomy view of the past effects of inflation, they were more optimistic than the general public sample about future wool price prospects.