WITH wool prices hitting their highest levels in more than 20 years, there are many happy wool growers in WA at the moment.
But while things are better than they have been in the industry for some time, most wool producers still feel prices need to be higher to compete with the large increase in farm input costs that has taken place over 20 years.
Using a tonne of super as an example, it cost $121 a tonne (ex GST) in 1988 and in 2011 it cost $330 a tonne. This is a rise of 173 per cent and much bigger than the increase we have seen in wool prices over the same period.
But Westcoast Wools managing director Luke Grant said he didn't agree with comments that the price of wool needed to be higher, while also acknowledging rising input costs.
He said livestock prices also needed to be taken into account.
"With the current prices of stock and wool sitting where they are, if done correctly, producers should be able to make things work," he said.
"But markets will be affected for years to come because of the global financial crisis.
"We have to remember wool is a commodity and what determines the commodity price is what the world wants to pay.
"Really, looking where prices are, some micron prices are at good levels.
"With current prices, our bigger growers certainly believe they can make it work."
Elders wool manager Danny Burkett said there had been large variants in the cost of production over the years.
"Even at levels lower than today's price, there have been growers who have made profits with wool," he said.
Mr Burkett said it was important that everyone kept the market in perspective because even with 21 micron wool trading at 1350c/kg clean, at a 68 per cent yield, it was still worth $1600 a bale, for good sound fleece wool.
But Kojonup wool grower Kevin Norrish said rising input costs for many farmers was a large factor.
"The price of wool is pathetic and it should be a lot higher than what it is," he said.
"It's costing us a huge amount of money to grow it and we hardly get anything out of it.
"The wages are going up all the time, the price of shearing goes up, yet our wool doesn't."
