With South Africa a major supplier of RWS-accredited merino wool and an important merino production region, it is timely to review the South African supply for the last season. This is particularly relevant given the falling volume of greasy wool production in Australia at present.
South African wool data was drawn mainly from the Cape Wools website (see more here) with additional input from the large South African agricultural services provider BKB (see more here). Of the South African wool clip, about 68% (in greasy terms) is merino, and of this, approximately 55% is RWS accredited.
In clean terms, the total South African merino clip is 19.4 million kg (mkg), averaging 19.2 micron compared with the Australian merino clip of 147 mkg (AWTA volumes adjusted for breed), averaging 18.35 micron. In 2024–25, 55% of 19.4 mkg equated to 10.67 mkg clean of RWS merino wool in South Africa, while 6% of 147 mkg in Australia equated to 8.82 mkg clean of RWS merino wool. At the micron category level, the comparison tells a more varied story.
Figure 1 shows the micron distribution for the merino clips in South Africa and Australia last season, in clean terms. The comparison of South African volume to the equivalent Australian micron volume is shown by the line, peaking at 20% for the 20 micron category. The South African micron distribution is modelled to estimate categories below 17 microns. From this schematic, it is clear that the relative size of South African merino production compared to Australian production varies significantly, with concentration in the 18 to 23 micron range.
In Figure 2, merino volumes for the two countries have been narrowed down to RWS-accredited wool only, using the published South African micron categories. At the top of the South African bars, the ratio of South African to Australian RWS merino volume is shown for each micron. For example, for 17 micron and finer, the South African RWS volume is 0.1 (10%) of the Australian volume, while for 19 micron it is 2.7 times (270%) the Australian volume. South Africa is the clear major supplier of 18.5 micron and broader merino wool between the two countries, comparable to 17.5–18 micron, and is a minor supplier of 17 micron and finer wool. For a more comprehensive global perspective, South American RWS merino production also needs to be considered.
Figure 3 addresses the price comparison between the two markets. It shows the average South African merino price, and the average Australian merino price adjusted to match the South African micron point (19.2 in 2024–25). Last season, the South African average merino price was about 50 cents clean per kg higher than the Australian price, a difference easily explained by the 55% RWS accreditation rate compared with only 3% accreditation for 19.5 micron merino wool in Australia.
In Figure 4, the average Australian merino price, set to the South African micron point in recent seasons, is shown for all merino wool, for non-mulesed merino wool, and for RWS merino wool. From this perspective, Australian prices hold their own against South African prices, bearing in mind quality and logistical cost differences between the two wool regions. The South African price sits between the Australian non-mulesed and RWS price.
What does it mean?
Greasy (unprocessed) wool is an international commodity with international prices, so it is unsurprising to see that comparable wools from South Africa and Australia sell for similar prices. In terms of supply, South African volumes are heavily weighted on the broader half of the Australian merino production, which is shrinking at a rate of knots at present. On the finer side of the micron distribution, Australia is the dominant supplier of merino wool, including RWS-accredited wool.
Key Points
- The South African merino clip is around 13% of the Australian clip in clean terms (19.4 vs 147 mkg clean in 2024-25).
- When looking at RWS-accredited merino wool, the South African production is 1.2 times that of Australia (10.7 vs 8.8 mkg clean).
- When the relative supply of RWS wool is looked at by micron, South Africa is the main supplier of 18.5 micron and broader, while Australia is the main supplier of 17 micron and finer.
- Pricewise, when adjusted for micron and RWS accreditation, the average prices from the two clips are very similar.
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Data sources: Cape Wools, RBA, BKB, AWEX, ICS, Mecardo
