NSW wool producers are well placed to take advantage of an emerging market opportunity for organic wool to Europe and the United Kingdom.

This follows Dubbo-based Fletcher International Exports’ (FIE) decision to process organic wool.

With premiums being paid, there’s growing optimism that producers will jump at the opportunity to supply quality organic wool for the world’s leading fashion houses.

FIE gained certification through the National Association of Sustainable Agriculture Australia to process organic wool last September and by early December had purchased enough certified wool from auction and producers to process their first batch of 19.5 microns at 62 milimetres hauteur.

In a bid to maintain a regular supply, FIE is consistently paying between five and 10 per cent above conventional prices for organic wool purchased direct from the producer, eliminating broker handling charges.

While the push is in its early days, the industry’s ability to meet demand will determine the profitability of organic wool in the long-term, according to Fox and Lillie technical and marketing coordinator, Eamon Timms.

"We’re receiving more enquiries recently to supply organic types and other exporters are reporting similar interest," Mr Timms said.

"Whether the organic wool industry can profit from such demand is going to depend on developing better supply."

Roy Dunworth, who markets organic wool top for FIE agrees that increased supply is critical.

"This is why we have to work to deliver significant premiums to ensure the right price signals are present to encourage increased production," he said.

"It is equally important to spread our risk, meaning we work hard to find many different markets for organic top to ensure that we are not reliant on just one."

Another example of the evidence of the growth in industry was the largest ever dedicated organic wool sale, hosted by Elders Ltd in Melbourne during May.

The sale consisted of more than 600 bales of certified organic wool, to be made into woollen fashion items to service the rapidly growing trend for environmentally friendly clothing in the UK and US.

In order to raise awareness of the opportunities that exist, FIE has been holding a series of open days to showcase their operations in Dubbo.

The days have also been a great opportunity for conventional producers seeking more information to meet organic producers and discuss how they manage their organic sheep enterprise.

There is little doubt that significant opportunities exist for producers in the rangelands of NSW to convert to organic production.

However, like any other enterprise choice, they need to consider the pros and cons before making a decision.

NSW DPI can assist producers with advice on making the change to organics through its network of livestock advisory staff.  

Contact Scott Seaman, Bathurst, (02) 6330 1200, scott.seaman@dpi.nsw.gov.au or Phil Cranney, FIE wool processing manager, (02) 6884 5833.