Recent AWI international consumer research shows a mass trend toward a lifestyle of health and sustainability, with approximately one in three consumers preferring natural/organic fibres for their clothing. This means demand for organic (or otherwise environmentally assured) food and fibre is quickly growing from niche to mainstream markets. At the retailer level, AWI research has confirmed that major brands and manufacturers are widening their interest in the production and marketing of organic/eco friendly apparel.

Wool is well positioned to meet this growing market with excellent ‘natural’ credentials – it is a natural, renewable, biodegradable protein, produced in extensive grassland ecosystems. However, assurance of these environmental credentials at finished product stage requires proof of compliance to certain standards through the supply chain. There are two major emerging standards: certified organic/biodynamic, and the EU Ecolabel.

Organic wool

‘Organic’ food and fibre is produced to a set of standards related to issues such as chemical use, animal welfare and sustainability. The principle behind organic farming is to produce food as ‘naturally’ as possible. Biodynamic farming is a form of organic farming, using preparations made from farm-sourced materials to enhance soil structure and nutrient cycles, hence improving plant and animal growth and development.

Around 300 tonnes of clean certified organic/biodynamic wool is currently produced in Australia – about 0.06% of the national clip. The major certifications used are the Australian National Organic standard (EU 2092/91 compliant) and USDA NOP standards (US Department of Agriculture compliant).

It costs sheep producers about $1,000 – $3,000 to comply, annually. This is due to costs of compliance and certification, changes to sheep management practices associated with disease control and potentially higher sheep mortality as a result. Most organic wool producers in Australia are in the low rainfall areas, as their management practices are highly compatible with the organic standards.

There are currently four certifying bodies for organic wool in Australia. Visit their websites at:

• National Association for Sustainable Agriculture, Australia (NASAA): http://www.nasaa.com.au
• Australian Certified Organic: http://www.aco.net.au/
• The Bio-Dynamic Research Institute (BDRI): http://www.demeter.org.au/
• Tasmanian Organic Biodynamic Producers Inc:http://www.tasorganicdynamic.com.au/

EU Eco-label compliant wool

There is an increasing probability that chemical residues left on wool at sale will lead to loss of markets, price penalties or both. At present, only the European Union has published environmental standards for chemical contaminants. These took effect in October 2007. It is expected that environmental standards similar to those of the EU will gradually become a feature of other export destinations.

On the positive side, there are opportunities to capitalise on wool’s natural image by exploiting ‘eco’ marketing niches. The European Union Eco-label provides one such voluntary opportunity. The EU Eco-label is a scheme by which products are certified for their ‘kindness to the environment’. In the case of wool products, this includes chemical residues on raw wool falling below certain prescribed levels.

The EU Eco-label provides a set of standards for greasy wool that wool producers can aim to meet by following some simple rules about chemical use. There is no compulsion to try to meet these standards, but they may provide a small price premium if wool is sold through a supportive broker. Wool can also be tested by CSIRO to provide objective evidence of compliance. The cost is around $130/sample for the “E1 Wool residue testing (a) AWTA greasy or scoured core samples” test. To find out more about this testing service, visit CSIRO Services:http://www.csiro.au/services/ps1s5.html

The AWI-funded pesticide residue survey of sale lots in Australia estimates that 40% of the national clip is potentially compliant with the EU Eco-label, although currently only 1% of the national clip is tested to demonstrate compliance.

Wool producers can also declare the residue status of their clip at sale by completing a voluntary vendor declaration in the woolclasser’s specification. This declaration, however, provides only minimal information to the buyer, with the only options being ‘Nil’, ‘Low’, ‘High’ and ‘Not applicable’ in reference to residue risk.

A properly audited broker’s scheme or objective residue test is more likely to attract serious buyers of low-residue wool.

Landleader

Landleader is an environmental stewardship program currently under development by AWI and MLA. It will allow sheep producers to assess current management practices against recognised industry ‘best practice’, and track improvements over time. Information collated about on-farm practices will also contribute to improving and promoting the environmental credentials of the wool and red meat industries.

The program looks at the following key areas:

• Sustainable use of natural resources (soil, water and vegetation)
• Stock management
• Chemical use on farm and
• Processing (off-farm, wool only)

The program is voluntary, free and takes about 1 hour to answer a number of survey questions in the on-farm areas. Sheep producers receive individual, customised reports which benchmark against industry best practice, and in time, other sheep producers in their region or sheep producer group, and potentially to specific markets.

For processors, the processing module provides a checklist on how to meet EU Eco-label standards.

This program has been trialed with sheep producers, and is expected to roll-out in 2008. For more information, visit www.landleader.com.au.

Further sources of information

Landcare Australia and Elders have joined forces to support Australian farmers under Landcare Farming. Visit: http://www.landcareonline.com/partner.asp?partnerid=71