14. Aug, 2015

Wool Testing Has Always Been a Lottery. Part 3

      Bought and Sold Twice.    An anecdote.

Before the introduction of Wool Testing, there was money in " style, " bright, even crimp , well grown wool. Now the main determinates are micron and yield, as it should be, now style means nothing. In those days the Wool Buyer had to be highly skilled.

With the introduction of Sale by Sample, with certificate, the first thing that was abandoned was any premium for style. 

This was ably demonstrated by a lot that was bought a sold twice by the one Buyer, that I am aware of, which was of some benefit to Australia's export income.

I was told it happened like this, a lot of about 2,500 kg greasy, from a Western Victorian property, branded, I believe," Coolana" but I am not positive of that. Description was AAAFLC, meaning tender, in the Classers opinion, but not necessarily so, yeilding about 63 or 64 percent and 22 micron. It was presented for sale in Geelong around 1975, but it looked much better in both yeild and micron. The Broker should have advised the grower to sell, probably his whole clip traditionally.

It sold at auction for 176 cents a kg, greasy to buyer "A", remembering without this buyer it may have gone for about 170 cents to a processor. The buyers intention being to make about 30 cents a kg., bearing in mind transport and selling costs were about 6 or 7 cents a kg. then.

Two to four weeks later it was presented for sale in Melbourne, same quantity, repacked for traditional sale, new brand, description  AAAM. It was bought by buyer " B " a large Japanese Trading Company  for 235 cents. The market may have gone up about 25 cents per kg. 

So far so good. Till the head buyer for that company called for the bales to be opened, he may have had a guidance test done, then had the bales done up, and tested for the next auction.The wool naturally came up with a different result as is normal. Not known how much different from original test.

The lot was the bought again by buyer "A " for 208 cents per kg. through an agent, it is not known if buyer " B " pushed this price a bit, but he possible did given his prominence and experience.

At the next Melbourne sale the same wool,same quantity, new brand, description AAA M, sold for 255 cents per kg. by traditional subjective sale. So Australia's gain from this lot was about 285 cents Per kg . 255+ 30 cents lost by buyer " B ". Compared with the probable 170 cents, if the dealer hadn't been there.

And this after the history of wool growers lamenting the presence of wool dealers supposedly making money that they believe is rightly theirs, from wool.

It was not the wool dealers fault that the grower sold his wool by objective measurement when he  should have sold it subjectively. The more information given the less the seller will receive. Too much Imformation given means too many options for criticism.