Wool bales being sold as non-mulesed or ceased mulesed are increasing, but only incrementally, according to data highlighted in the Sheep Sustainability Framework's annual report.
During the 2022 financial year, data shows the amount of wool offered with a national wool declaration (NWD) status of non-mulesed or ceased mulesed wool equalled 15.8 per cent of Merino bales and 40.1pc of non-Merino bales.
While this has been cited by the sustainability body as showing the percentage of non-mulesed/ceased mulesed bales offered was on the rise, the increase was only slight, with 15.3pc of Merino bales and 39.6pc of non-Merino bales non-mulesed or ceased mulesing during the previous financial year.
The NWD is a voluntary scheme where not all wool is declared, with 77.9pc of all Merino wool and 63.8pc of non-Merino wool declared during the 2022 financial year.
The data comes from AWEX's annual report and the increase was highlighted at the SSF report launch.
According to the framework's national producer survey, 52pc of Merino producers mules their flock, compared to 8pc of non-Merino producers.
Wool Producers Australia CEO and Sheep Sustainability Framework board member Jo Hall said the figures showed a minor increase, signalling current premiums for non-mulesed wool ranged between eight and 16 per cent, which weren't enough of an incentive to convince many producers to make the change.
"We hear from our markets that preference is for non-mulesed wool, but I think the reality is the market signals aren't there in terms of tangible signals," she said.
"While there are some premiums being paid for non-mulesed wool, clearly it's not enough to drive practice change at a farmgate level and I think that's the key here.
"If you look at the Sheep Producers Intentions survey ... certainly the intent is for producers to at least investigate moving that way, but until we see price realisation in the market, I think that's going to be some time away."
Ms Hall said about 82pc of Australia's wool goes to China and most of that is mulesed.
"There is so much talk from the supply chain about the apparent desire for non-mulesed ... the market prices are inconsistent with the amount of chatter within the supply chain," she said.
"From a producer's point of view, it's quite confusing.
"If we started seeing significant discounts for mulesed wool, that would be a driver as well... at what point that happens, if it happens, I don't know that anyone can tell."
Four Paws leading wool campaigner Rebecca Picallo Gil said it was disappointing that the amount of non-mulesed wool being offered isn't growing at a quicker rate.
"The genetic solution, which we are emphasising, has been in place for three decades and that is what brands are asking for," she said.
"It depends on the industry... if they want brands to continue using Australian wool they need to switch to more sustainable options and mulesing is not what brands what, that's what they tell us."
Ms Picallo Gil is in Australia as part of the body's campaign against mulesing.
Last week she attended the Animal Welfare Forum hosted by the Australian Wool Innovation in Sydney, handing over an open brand letter of intent signed by 66 international fashion brands calling for a 2030 end to mulesing.
"We haven't started to communicate with China, but I won't say we don't have that in mind," she said.
"I think it's important for growers to look towards the future and where the trend is going and China will eventually change."
MORE READING:
A Meat & Livestock Australia funded research project published in December 2022 indicated that prime lamb enterprises transitioning to non-mulesing operations could achieve a positive cash flow ranging from $0.33 to $219 per DSE, and highlighted the possible premiums available for non-mulesed wool.
The University of Melbourne project developed a cost benefit analysis tool to allow producers to estimate their financial position following a phase out of mulesing over seven years.
Another major finding from the research indicated producer attitudes towards mulesing are important drivers in the decision to run mulesed operations or not, with an extension strategy then developed to encourage more producers to stop mulesing.
The report said while prime lamb producers will incur little cost transitioning, analyses indicated that Merino wool producers would require an ongoing non-mulesed wool premium of about 6.5-7pc to break even with the costs of phasing out mulesing.