AUSTRALIAN Wool Innovation believes its stance on mulesing has led to greater confidence in the wool industry.
Prominent AWI board member Chick Olsson went so far as to attribute the soaring sheep and lamb market to the "non-interventionist decision" made by AWI on the fractious issue of mulesing.
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"Since the AWI board decided not to support a deadline approach to mulesing in July 2009, confidence is once more returning to the Australian sheep industry," Mr Olsson said.
Mr Olsson argued that ewe retention in Australian Merino flocks was in part due to AWI not supporting a deadline approach to mulesing.
He also believed Merino and crossbred ewes have enjoyed rising prices since July 2009 due to "our non-interventionist decision, combined with the Laurence Modiano letter to UK retailers in July".
However, Meat and Livestock Australia chief market analyst Peter Weeks said higher lamb prices are a reflection of the season as well as a big fall in flock numbers, which are now down to their lowest level since Federation at 71.6 million head.
"Higher lamb prices are reflecting both a big fall in numbers as well as an improved season in South Australia and Victoria, which has led to better grazier demand, particularly for prime lambs and not wool-producing sheep," Mr Weeks told The Weekly Times.
The national sheep flock fell 7 per cent in the past year, according to Australian Bureau of Statistics data.
WoolProducers Australia president Don Hamblin also agreed that rising sheep prices were due to higher kill rates than production rates.
He said there was a "philosophical difference" between AWI and WoolProducers on the issue of mulesing.
"However, we are letting AWI manage the issue of mulesing," Mr Hamblin said.
"WoolProducers' point of view has always been to produce food and fibre according to what the customer wants."
