WAFarmers has raised serious concerns about the future of Western Australia’s wool industry following Elders’ decision to cease wool processing and sales in Fremantle from July 2027.
Under the change, WA wool will be transported to Melbourne for processing and sale, a move WAFarmers warns could increase costs for growers and further undermine confidence across the sector.
The organisation says the decision confirms long-standing concerns about the Federal Government’s planned phase-out of live sheep exports by sea, which it argues has accelerated structural change in the state’s sheep industry.
According to WAFarmers, Western Australia’s Merino flock and wool production have declined sharply in recent years, driven by flock liquidations, a shift toward meat-focused breeds, and reduced producer confidence. The group believes the scale of decline has exceeded earlier projections, with significant impacts already being felt across the supply chain.
WAFarmers also points to a lack of price certainty in wool markets compared to sheepmeat, where forward contracting options are more widely available. It says introducing similar mechanisms for wool could help restore confidence among growers.
The organisation has encouraged producers to explore alternative marketing pathways, including direct selling, while calling on the Federal Government to outline stronger measures to support the WA wool industry during the transition away from live exports.
WAFarmers warns the Elders decision may be ‘just the tip of the iceberg’ for further contraction across the state’s wool supply chain.
