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Wool...what will you do with yours...
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<blockquote data-quote="Frank-the-Wool" data-source="post: 7856331" data-attributes="member: 699"><p>It is an interesting suggestion but I will try to explain why it is different from a livestock market or any other auction that only sells a product direct from a vendor and cannot have a fixed percentage.</p><p></p><p>Wool comes does not come to be sold from a farm or wool producer in a fixed format. It has to be graded first to guarantee what the type is, so there is immediately an additional cost.</p><p>Secondly it has to be packed into a 350kg bale of the same wool type and will be core tested (a scientific analysis) to ascertain the quality of every 350kg bale in what will be a 27 tonne auction lot. This auction lot depending on what it is may come from 10 to a 1,000 farmers.</p><p>Less than 10 farmers in the whole of the British Isles have enough wool of a single grade to make an auction lot.</p><p>The wool may have to be stored for over 12 months as the first new season wool auction is in late June or early July and the last the following May. There is a cost to storage.</p><p></p><p>Therefore BW have to deduct the costs of grading, testing, storage, auction costs and transport off the price. The fixed costs are diluted by the more wool that is handled.</p><p></p><p>If you sell a lamb it is easy for the auction company to take a fixed commission as they don't have any other costs than running the market and taking the credit risk. </p><p>Credit risk is one thing that BW do not have to worry about as no wool is released unless fully paid for!!</p></blockquote><p></p>
[QUOTE="Frank-the-Wool, post: 7856331, member: 699"] It is an interesting suggestion but I will try to explain why it is different from a livestock market or any other auction that only sells a product direct from a vendor and cannot have a fixed percentage. Wool comes does not come to be sold from a farm or wool producer in a fixed format. It has to be graded first to guarantee what the type is, so there is immediately an additional cost. Secondly it has to be packed into a 350kg bale of the same wool type and will be core tested (a scientific analysis) to ascertain the quality of every 350kg bale in what will be a 27 tonne auction lot. This auction lot depending on what it is may come from 10 to a 1,000 farmers. Less than 10 farmers in the whole of the British Isles have enough wool of a single grade to make an auction lot. The wool may have to be stored for over 12 months as the first new season wool auction is in late June or early July and the last the following May. There is a cost to storage. Therefore BW have to deduct the costs of grading, testing, storage, auction costs and transport off the price. The fixed costs are diluted by the more wool that is handled. If you sell a lamb it is easy for the auction company to take a fixed commission as they don't have any other costs than running the market and taking the credit risk. Credit risk is one thing that BW do not have to worry about as no wool is released unless fully paid for!! [/QUOTE]
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Wool...what will you do with yours...
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