CCWG Wool Industry News

The CCWG recently held Management and Board of Director meetings at the 100th Annual General Meeting in Carleton Place & Almonte, Ontario on October 18th – 20th, 2018
The 2018 elected Board of Directors are as follows:
Executive Committee
President - David Mastine, St. Felix de Kingsey, QC
1st Vice President - Lee E. Sexton, Hanley, SK
2nd Vice President - Allan E. Ribbink, Tiverton, ON
- Roma H. Tingle, Prince George, BC

Additional Directors on the Board are as follows:
Warren L. Moore, Stavely, AB (Audit Committee)
Ward Harden, Fir Mountain, SK  (Audit Committee)
Ruth Mathewson, Central North River, NS (Audit Committee)
Gary J. Fox, Bloomfield, ON
Brian W. Greaves, Miniota, MB

For the fiscal year ending February 28, 2018 the co-operative recorded gross sales of almost 10.4 million which represents an increase of 2.5% from the previous year.  Net income of $425,599 from all business operations was achieved. Difficult wool marketing conditions for broader wools continued in 2017/18. This resulted in lower wool sales in our value-added wool trading division of almost 14.5% compared to the previous fiscal year. Canadian wool is currently being marketed to 6 countries, but China remains the major export destination for all wool types. Profitability was up at all retail locations with overall sales increasing by 9.2%. In terms of revenue ratio, the past year reflected 25% (wool) and 75% (retail).
The Board of Directors have authorized a dividend payment of 7% to the shareholders of record date December 31, 2017. The company has always paid a dividend and it has been 7% annually since 1999. The Shareholder Wool Shipper Loyalty Reward Program (SWSLRP) will remain at the rate of 7 cents per pound on the 2017 wool clip. Full details of these programs can be found on the company website www.wool.ca. For a report on the current wool market and our business update - www.wool.ca/Wool_Market_Reports. In other news, a thorough review and evaluation of the company’s long term strategic business plan was completed by the Board of Directors and Management team. 
2018 marked our 100th year in business which is a significant milestone to reach. To celebrate this event an evening banquet featuring fresh Ontario lamb was held at the North Lanark Agricultural Hall in Almonte, Ontario with 200 guests in attendance. In 2019 the Annual General Meeting will be held in Truro, Nova Scotia from October 17th – 19th.

The national Wool Certificate of Merit recipients for 2017 were announced as follows:

The following shearers were recognized for their long time service to the sheep industry.

Staff & Director retirement presentations

James McNeely, Wool Superintendent, Carleton Place
John Woodburn, CCWG Director, Alberta North

CCWG 100th AGM Banquet held at North Lanark Agricultural Hall
Almonte, ON - October 20, 2018

2017 Wool Certificate of Merit
David & Elizabeth Anderson, Andelin Farms from Orillia, ON
Presented by Allan Ribbink – CCWG Director Ontario West & Patrick Lamothe – Carleton Place Wool Grader

2017 Wool Certificate of Merit
Warren Moore – CCWG Director Alberta South presents the Certificate of Merit to Grant Preston, Mount Forest, ON
on behalf of his grandson Jordan Preston from Vauxhall, AB

Shearers recognized for long time service to the sheep industry
Left to right, front row: Judy Miller-Shelley, Jerry Kelleher, Ross Creighton, Terry Spicer, Bruce McEwen, Nicole Blanchard.
Left to right, back row: Steve Shelley, Tom Redpath, Ruco Braat, Richard Metheral, John Farrell, Peter Kudelka, Eric Bjergso – CCWG General Manager
Absent – Geraldine Heffernan, Donald Metheral, Robert Worden

CCWG staff attending the 100th AGM & Banquet

CCWG 2018/19 Board of Directors
Left to right: 
Gary Fox, Allan Ribbink, Warren Moore, Ruth Mathewson, Ward Harden,
David Mastine, Lee Sexton, Eric Bjergso, Brian Greaves, Roma Tingle

CCWG Wool Market and Business Update – Fall 2018
2017/18 Wool Market Update

Read full Market Report for 2018

In the last 12 months fine wools from all origins have achieved unprecedented record prices although at the time of this writing prices have pulled back for most microns in the last couple of weeks.  Unfortunately the crossbred and broader wools which are much more plentiful in supply have been left behind for the most part and have only recorded marginal increases compared to the previous year.

The growth in fine wool prices can be attributed to two main factors.  There is major concern regarding future available supply due mainly to ongoing Australian drought in most of the major wool producing states.  This has resulted in decreased production ie lower fleece weights due to feed shortages and reduced sheep numbers.  For the 2018/19 season it does not look any better with the current forecast of a 5.7% reduction in the Australian wool clip.

As always, China is playing a major role in influencing the market due to the significant growth of their middle class and upper income earners.  Despite rising prices, consumer demand for wool apparel has continued to grow.  It was only ten years ago when China was mainly a low cost manufacturing and re-exporting destination for most of the wool exported to China.  Today more than half of China wool imports are manufactured into wool products that stay in China and are purchased by Chinese consumers.  Upwards of 70% of global wool production finds its way into this market.  These are the main reasons for the current strong performance of fine wools.  Most leading Chinese textile companies are reporting an increase in domestic sales but a decrease in exports.  This underlines the huge growth potential for domestic sales within China as incomes continue to rise.

In terms of sustainability the key message to encourage consumers to choose wool continues to be that we have a natural fiber, renewable and biodegradable resource. 

In addition to challenging global climatic conditions the current USA / China trade conflict cannot be underestimated.  This escalating trade war remains a key risk to global economic activity and to global textile markets because of the uncertainty it is creating.  It has the potential to completely disrupt the supply chain and to lower consumer confidence which up to this point in time has been very high in most of the major wool consuming countries.  The present situation is that American raw wool, hides etc are now subject to a Chinese duty of 25%.  China accounts for 53% of all USA imports of wool clothing.

Although we have developed markets for Canadian wool in six countries, China will be our major export destination in 2018 for all wool types.  It does not appear that the new USMCA agreement will have any impact on Canadian

wool exports to USA, greasy wool is still rated duty free the same as the previous NAFTA agreement.  Our sales to USA will be lower this year because of the USA / China trade war, American mills have ample supply of wool that would otherwise be exported under normal wool trading conditions.

Our wool volume dropped approximately 4.3% during the 2017/18 wool marketing year but we are encouraged by recent Statistics Canada figures that indicate our sheep and lamb numbers have increased by 1.6% in 2018 compared to 2017, the first increase in 7 years.  However, the drought conditions experienced this year in several provinces has resulted in high feed prices that will likely result in some flock reductions or dispersals. 

The tough trading conditions for the broader wools in 2017/18 resulted in lower sales of almost 14.5% for Canadian wool compared to the previous fiscal year.  Conditions are somewhat improved during the current wool marketing season.  We have found much better selling opportunities compared to a year ago to our regular network of buyers and also some newly established customers.

Retail Business

The retail business of CCWG achieved better than projected results for the fiscal year ending February 28, 2018 and continues to grow.   Profitability was up at all locations with  overall sales increasing 9.2%  In terms of revenue ratio it is now almost 25% (wool) and 75% (retail).

2018 marks our 100^th year in business which is a significant achievement.  Sincere appreciation is extended to all staff and directors for your efforts in helping CCWG reach this major milestone.  You are the company’s most valuable assets.  Of course we must recognize the support we receive from our loyal customers who are the reason we are still operating and growing the business today.  We are fully committed to building relationships with our customers based on the right product at the right price and delivered with exceptional customer service.

Best wishes to all for continued success.

Yours truly,
Eric Bjergso
General Manager

30th Nanjing Wool Market Conference and Wool Trade Fair 2018

Following the recent retirement of James McNeely, Carleton Place Wool Superintendent, the following promotions at the Carleton Place Wool Grading Warehouse become effective today October 24, 2018.

Nathan Pappas-Barabe & Patrick Lamothe will work together and assume equal responsibilities as wool graders and warehouse supervisors. Daily wool grading will be completed on a rotating basis by each grader.

The warehouse staff supervisor duties will include overseeing logistics’ such as shipping, receiving, lot sorting, wool coring, health and safety etc. All warehouse wool grading staff will report directly to Nathan and Pat.

Promotions à l'entrepôt de classement de la laine de Carleton Place

À la suite du récent départ à la retraite de James McNeely, contrôleur en chef de la laine à Carleton Place, les promotions suivantes à l'entrepôt de classement de la laine de Carleton Place entrent en vigueur aujourd'hui le 24 octobre 2018.

Nathan Pappas-Barabe et Patrick Lamothe vont travailler ensemble et assumer des responsabilités égales en tant que classificateur de laine et superviseur d'entrepôt. Le classement quotidien de la laine sera effectué en rotation par chaque classificateur.

Les tâches du superviseur du personnel de l’entrepôt comprendront la supervision de la logistique, comme l’envoi, la réception, le tri des lots, la santé et la sécurité, etc. Tout le personnel de classement de la laine en entrepôt relèvera directement de Nathan et Pat.

Left to right: David Banbury, Nathan Pappas-Barabe, David Smith, Eric Bjergso, Pat Lamothe, Alan Davidson-Cummings, Eddie Banks, Troy Latham

Allison Preston, daughter of Paul & Viola Preston from Vauxhall, Alberta and grand daughter of Grant & the late Edith Preston from Dundalk, Ontario is currently shearing in Australia.

Recently she competed at the Culcairn Shearing & Wool Handling Competition, placing 1^st in the Novice Division.

She also competed in the Walbundrie Strong Wool Shearing Competition and placed 2^nd in the Novice Division.

(Allison Preston – on left in both pictures)

Eric Bjergso introduces us to the Canadian sheep and wool industry.

In his interview, Eric provides insights into the history of the Canadian wool industry, sheep breeds and wool qualities. He describes the challenges and opportunities Canadian wool growers are faced with and how the Co-operative is supporting its members in the same.

About Eric Bjergso

Eric Bjergso is the General Manager of the Canadian Co-operative Wool Growers Limited. Eric is a graduate of the Agricultural College. He joined the Canadian Co-operative Wool Growers Limited in 1976 and has been the General Manager since 1983.

Listen to the episode: 

http://www.elisabethvandelden.com/101-eric-bjergso/