Agr. Margarita Cortabarría

Estancias Puppo S.A.

It is important to highlight a breaking point after the outbreak of COVID -19, which started in Uruguay in the middle of March.

Since the very beginning, the government has managed the pandemic with great success, despite not having decreed mandatory quarantine, reaching the best results in Latin America. This fact is extremely remarkable especially considering Uruguay’s neighoburs, Argentina and Brazil, two countries with alarming figures and that are still having serious difficulties managing the pandemic.

Despite these successful measures, the effects of the Covid-19 worldwide, have damaged the local market in a very significant way, causing a reduction in the exports reflected in an almost paralyzed commercialization of wool. The drop in the international market followed by the pandemic have been a hard blow, not only internationally but also locally.

Uruguay is mainly an agricultural, meat and grain productor and also the forestry has become an important sector in the economy. As the prices of these commodities were not affected in a very significant way by the pandemic, the wool growers can postpone the sale of their wool expecting a better market in the future.

However, the new shearing season has already started and surely some woolgrowers will need to sell their wool as it is traditional in the last quarter of the year.

A significant volume of wool harvested in 2019 still remains in woolgrowers hands, so unfortunately it is probable that a reduction in the sheep stock will take place; due to the high price of the meat and the low competitiveness of the wool because of the other products mentioned above.

Current season:

Better quality of the wool compared with the last season because of the dry climate during the summer.

The diameter will be a little coarser, better colour and higher strength.

In order to improve the quality in the presentation of the wool, some changes have been made in the Code of practice of the wool classification. Some of these include the elimination of the blue label, the creation of the yellow label (with higher requirements to guarantee the sorting work and more control of the process as well) and also a continuous empowerment of the green label wools. The green label wools are those that have had a better shearing and classification, which guarantee it’s quality and presentation.

Given Uruguay’s extraordinary natural conditions where the production takes place together with the skilled work of woolgrowers, is that many wool lots have achieved different certifications as RWS that aim for animal and social welfare, land management and environmental care. 

In addition, the Organic certification has been achieved by reducing the environmental impact to a minimum, controlling the grassland and caring for the native wildlife.

It is also important to mention that Uruguay is a country free of Mulesing.

July 2019 – June 2020

·       Production: 24.000 tons greasy base.

·       Sheep stock:  6,4 million heads

EXPORTATIONS -  Uruguay has exported 23 million kg equivalent greasy base (greasy, scoured and top). This means 48% less than last period.

The wool in physical volume greasy equivalent base has been exported as:-        59% Top   - 17% Greasy - 24% Scoured.

For greasy wool; China was the main destination with 43,8%, Bulgaria 15,1%, Czech Rep 14,1%, Italy 8,8% and Egypt 6,4%.

In Scoured wool; China acquired the 70,6%, followed by India 6%, Brazil 4,5%, Egypt 3,6% and Thailand 3,5%.

In wool tops; China was the main destiny too with 41,5%, Germany in a second place with 17,2%, Italy 8,3% and Turkey is in the fourth place with 8,2%.

IMPORTATIONS-  The local industry imported 13600 tons of greasy wool, approximately 44% from Brazil, 24% from Peru and 9% from Argentina.

PROFILE OF THE URUGUAYAN WOOL PRODUCTION IN MICRONS:

A refining in the wool micron can be appreciated along the last 5 years.

There is an increase of 6% in the volume the wools finer than 25 mic; and same % of reduction of the wools coarser than 25.1 microns.