FALKLANDS wool producers were officially invited yesterday May 21 to consider selling unsold wool to the Falkland Island Government. On April 22, 2020 Executive Council agreed to buy unsold wool based on AWEX (Australian Wool Exchange) prices from March 2020, before the effects of COVID-19 caused a sharp fall.
A letter sent to producers from the Department of Agriculture (DoA) outlines how a farm business can submit an ‘expression of interest’ by completing a ‘desire to sell’ form.
The form asks for information regarding the wool to be purchased by category such as weight, type of wool, for example fleece or belly wool and information from their wool test such as micron (fineness of wool).
The closing date for expressions of interest is June 2, 2020.
Portfolio holder for Natural Resources, MLA Teslyn Barkman said she hoped farmers take up this commitment from FIG.
“This is an excellent opportunity for wool producers to find a way to navigate their businesses through 2020, in the light of very low wool market appetite and prices. It remains optional but is a significant, sector-specific offer, alongside other measures available to support businesses through COVID-19 effects.”
Dr Andrea Clausen hopes the scheme is welcome news for the sector.
“Falkland Islands Government and the DoA are pleased to be able to offer this one-off support initiative, which is designed to keep the sector buoyant in the short to medium term, during which time we hope that markets return to a more positive footing.”
Senior Agricultural Advisor Tom McIntosh said price will be Nett Stanley, and factors in the costs of commission and freight.
“Costs for wool testing will remain the responsibility of wool producers, and further advice and support from DoA can be sought on this or details of the scheme if needed.”
Once validated, DoA will allocate a price for the wool using the information supplied by the farmer.