WOOL JUMPS: Wool producer Ian Cullen at the Warwick Sheep Sale.
WOOL JUMPS: Wool producer Ian Cullen at the Warwick Sheep Sale. Ben Wilmott

Price of wool is set to rocket

WARWICK wool producers are set for a strong return on investment as market prices continue to rise.

The Queensland wool market has seen a steady rise in prices this year as the high number of slaughter numbers last year has left a void in market availability.

A lack of wool for sale nationally is driving prices at wool selling centres across Australia.

Last week only 41,832 bales of wool were offered at auction nationally.

Based on the steady rise, brokers are expecting the strength in the market to continue as buyer competition heats up.

The tight supply has left many exporters with unfilled orders, which are set to push market price even higher following the spring shearing season.

Despite all the good news, Warwick wool producer Ian Cullen is not getting carried away with the expected rise in wool prices.

"The wool market here is still behind where it should be when you consider production costs," Mr Cullen said.

"We are having to spend more in money outlay, which is offsetting the higher prices. Shearing costs still remain too high for most farmers."

Many sheep farmers have begun shearing their own stock to combat rising overheads.

Shearing costs and the threat of wild animal attacks on stock are still serious problems facing wool producers in the area.

Mr Cullen said that before erecting a new compound fence, he was losing between 300 and 400 head of stock per year.

Southern Downs Regional Council has recently announced its baiting program for the year to target the threat of wild pigs, foxes and dogs.