Woolgrowers hands may be forced to go back to 12-month shearing if rate increases

Last month Australian Worker's Union called for the award rate for shearers to be increased by at least one dollar for every sheep they shear.

But those farmers that shear at shorter intervals say they don't want to return to 12-month shearing due to both the pressure on the back pocket as well as longer staple lengths.

Condobolin wool producer Graham McDonald, who runs 5500 Merino ewes in partnership with his brother David and son James, said returning to 12-month shearing after shearing their Merino portion at six-month intervals will see their wools too long for the market.

"We really can't go back to 12-month shearing because of the length," Mr McDonald said.

"We are getting good length at six-months, cutting 65mm, but if we go to 12-months it is normally about 110 to 115mm.

"It will be at a length the processors don't like anymore, so we have a problem."

Originally preferring eight-month intervals for their crossbred portion, Mr McDonald said they are now going to have to simplify their system and bring them all into line at six-months.

"Our crossbreds normally have two lambings a year. We were doing eight-month shearing, but now we are going to drop the two lambings, go back to one, so we can get the contractor twice a year," he said.

"Our contractor has certainly been very obliging to do it, but it does make it awkward for him when you don't have a regular time frame.

"He has clients at set times, and to give continuative to his shearers he needs a schedule that he can give to his shearing team for the 12-months."

Using the same contractor for over 20 years, Mr McDonald said if the price increases, the business would feel the effect, especially shearing every six-months.

"In the big scheme of things the extra dollar isn't a lot if you get a good team, they turn up and they do a good job," he said.

"But if it is going to cost us substantially more, the six-month shearing could become a drama."

On Monday, peak woolgrower representative body WoolProducers Australia clarified there has been no official increase in the award for shearers and shed hands.

But admitted the shortage of shearers is resulting in woolproducers having to come to some sort of agreement to "get the job done".

"Parts of Australia are experiencing a significant shortage in shearers at the moment, which in turn has seen above award rates being paid to secure shearers", WoolProducers CEO, Jo Hall said.

"The current situation of woolgrowers having to pay above award rates is a completely commercial arrangement between the woolgrower and shearers or shearing contractors but there is no legal obligation for growers to be paying above the award.

"However, unfortunately for growers there are simply not enough shearers to do the job at this point in time and as with any supply and demand situation, the market must pay what is required to get the job done."

But according to Mr McDonald the real problem is not in the extra money, it's the uncertainty for contractors.

"The state of the shearing industry is a big concern," he said.

"How can you run a contracting service and not know what you are going to pay?

"I am happy to pay the extra money, I think they (the shearers) deserve it to be honest, but it makes it not viable for the contractors if they haven't got a set rate to go with, they just can't run a business.

"That is the bigger problem than the actual rate paid, it is not knowing the rate."

He also believes if the price goes up, it is a sure sign someone is missing out on a shearer.

"It's a market-driven problem. There is such a shortage in the market. If we are going to have to pay substantially more then someone is going to miss out," he said.

"If the shearers are going to be that short, just getting the job done is going to be a bigger problem than the money."