Wool producers shocked and disappointed by Elders’ decision to pull out of WA wool sales

WA wool producers, who are still regaining their confidence after an uplift in the market, have been left shaken and disappointed by Elders’ decision to pull out of the State’s wool sales.

Citing a nearly 40 per cent drop in WA’s wool clip production in recent years, the agribusiness giant made the announcement to clients on Tuesday that it would cease the handling and selling of wool in WA as of July 2027, with selling instead to be done from Melbourne.

Badgingarra sheep farmer and Challara Poll Merino stud manager Peter Wilkinson said he had hoped the decision was simply a rumour and was surprised by the announcement, and warned it would have a “domino effect” to WA’s sheep industry and regional communities.

“We’re already at a low supply level so it’s going to put a squeeze on the supply level of the Fremantle wool market, which is going to put pressure on actually having a wool source,” he said.

“It’s extremely surprising when we’re actually at a level where wool prices are the best level they’ve been for quite a few years — people are starting to get their confidence back.

“We’re in a position where we should be getting in shape now, not out of it.”

Figures released from the Department of Primary Industries and Regional Development estimate WA’s sheep flock to sit between 8.6 million and 9 million head of sheep as of June last year.

An Elders spokeswoman previously told Countryman that the agribusiness held concerns about the long-term viability of the WA wool market after an almost 40 per cent decline in production in recent years, prompting exploration into alternative options for wool handling and sales.

“Our priority is to identify the solution that delivers the greatest benefit to growers ensuring strong access to buying competition, efficient speed to market, and long‑term sustainability for WA’s wool industry,” she said at the time.

Rhodes Pastoral managing director Michael Wright said he was “disappointed” and pretty annoyed by the decision after he was swayed to become a client in July last year.

The operation’s sheep portion includes 13,000 head of Merinos and wool sales make up a significant portion of the business, along with livestock and cropping.

“I’m a bit disappointed, more so for WA growers than anything, that the volume will leave the State,” he said.

“We jumped ship as of the first of July last year to become an Elders client in the wool sector — we’ve been Elders clients for years with our livestock but not wool.”

Mr Wright said he had an “inkling” about the decision about a month ago but was not impressed by the decision — the latest amid fuel and fertiliser crisis that has prompted a revaluation of the farm’s operations.

A statement from Wool Producers Australia said Elders’ decision ultimately stemmed from the Federal Government’s decision to ban live sheep exports which has lead to an “immediate and severe” decline in WA’s flock.

“WoolProducers were vocal throughout the consultation phase of that decision, warning that any move to ban the live export industry would have a severely detrimental impact on the Western Australian wool industry,” it said.

“This announcement by Elders has proved that the paltry compensation package that has been offered by the Federal Government has done nothing to keep western growers in the wool industry.

“It further underscores the deeply flawed ideological decision made by the Federal Government to shut down an industry.

“Government funding for road maps or strategies count for nothing when it is commercial realities that dictate the viability of industries”.

Sheep Producers Australia chair Bindi Murray said it was a shift for WA’s wool supply chain, particularly for Elders clients, and reinforced the importance of the Future Flock national sheepmeat and wool road map in development.

“An aligned, forward-looking industry with a clear plan can respond to change with a strong understanding of what it means for producers and the rest of the supply chain,” she said.

“A change like this underlines the importance of having a national plan to support informed decision making.”

Elders operations general manager Dave Adamson said the decision was proactive to act in the “best interest” of its clients.

“Transition WA wool handling and selling to Melbourne ensures growers continue to benefit from strong buying competition, efficient processing and consistent weekly auction access, despite the significant decline in local production values,” he said.

Elders did not confirm the future of its three-year-old East Rockingham wool stores facility.

Mr Adamson said the decision did not mean Elders was moving away and said it remained fully committed to WA’s wool industry.

“We are moving away from our WA handling facility due to declining production volumes felt across the industry, not walking away from growers,” he said.

“We will continue to operate our branch network across WA, support local communities and invest in long-term, sustainable solutions for our clients.”