WOOL leaders have warned that a surge in international apparel brands turning their back on wool from mulesed Merino sheep is taking shape, in a move that could see Australia lose valuable market share to its competitors.
At the same time as Marks and Spencer's head of technology, Krishan Hundal, declared publicly the company's decision to source only wool form non-mulesed sheep for its menswear business, one of its Australian supply chain partners has signaled that this is just the start of a building world-wide movement.
The Merino Company's (TMC) chief executive, Mark Mackinnon, said Marks and Spencer's announcement last Wednesday to cease buying wool from mulesed sheep for its menswear business by the end of 2010 was simply the retail giant holding firm to a commitment it flagged five years ago and came as "no surprise".
"They are sticking to their policy," Mr MacKinnon said.
"Certainly some others (retail outlets) are starting to move and I am almost certain there will be more."
Marks and Spencer source up to 80,000 bales of Merino wool annually, of which around 30-40 per cent is used in menswear.
Marks and Spencer is amongst 10 global retail companies, including Nike, Gap, Hugo Boss, Abercrombie and Fitch, Timberland, H&M, American Eagle, Columbia Sports Wear and Liz Claiborne that have announced publicly their opposition to mulesing in recent years.
Mr Mackinnon said TMC would have "absolutely no problem" supplying its largest client with its non-mulesed wool demands.
But asked if orders could be filled using exclusively Australian non-mulesed Merino wool and Mr Mackinnon said "probably not".
"Around 20per cent of the apparel wool is from unmulesed sheep, of which Australia has a small portion – this is the issue," he said.
"Australia used to achieve a premium over all other markets and that premium has now gone."
Mr Mackinnon said South Africa and South America (where mulesing is not done) had caught up in the wool quality stakes and to meet orders TMC would look there.
"The million dollar question is how many Marks and Spencer's have to come on board before supply becomes an issue?" he said.
In a letter of notification obtained by Rural Press from Marks and Spencer, the company states: "...the 2010 deadline is not negotiable and loss of confidence in M&S wool products could well lead to widespread customer boycotting and loss of revenue for the whole supply chain."
The statement listed that all wool bought for its menswear business would come from non-mulesed sources – "either Australian non-mulesed or from areas such as South Africa where mulesing does not occur".
Woolproducers executive producer Greg Weller said any loss of market share from one of Australia's Merino wool customers would be disappointing.
"The world has come to us with their concerns about an industry practice, and in a short period of time we have given choice through national declaration, and choice for growers through alternatives and through pain relief," Mr Weller said.
In last month's AWEX mulesing status report, 11,167 bales were declared as either ceased mulesed, non-mulesed or pain relief, down from 13,975 in February this year.
In the year to date figures 42,581 kilograms of non-mulesed wool had been tested.
TMC's knitwear manager Mark Brooks is expected to secure wool orders for the TMC pool this week, amid discussion about its non-mulesed Merino brand platform.
TMC has extended its eastern Australian agent base with Ruralco's Rodwells and WISS joining Lempriere Fox and Lillie last month.
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