Market failure

So long as we’re on agriculture (or at least, the Brazilian is), I thought I’d post this image from an organic sheep farm in Chile:

Harvested organic wool in the Santiago Metropolitan Region, Chile.

This is a pile of wool on its way to be composted into soil mulch. The farmer sheared the sheep, but the price for raw wool in Chile is so low that it’s not worth it to haul the fiber to market. That despite international prices for finished Chilean wool yarn of around USD$20 a pound.

If you want to start a company cleaning, carding and spinning wool in Chile, there may be money to be made in the gap between cost & price.

8 thoughts on “Market failure

  1. westslope

    Interesting. What caused this apparent oversupply of ‘organic’ wool? (What is inorganic wool? Polyester?)

    And if the market is oversupplied, why did the owner shear the sheep? Was he unaware of market conditions? Or did market prices move unexpectedly against the farmer?

  2. sapitosetty Post author

    Organic means the farming process avoids certain chemicals. I suspect you know that and are just being difficult. Your question of why the farmer sheared the sheep is a good one. I don’t know. Maybe sheep like to be sheared in summer. It’s hot in summer. This photo is from early fall, but I’m just getting around to posting it here in late winter.

    The market has been like this for years. But what the heck, shear the sheep.

  3. westslope

    “Organic means the farming process avoids certain chemicals. I suspect you know that and are just being difficult. ” -setty

    Well, given the history of creative thinking and writing with regards to what ‘organic’ exactly means in North America, isn’t being difficult warranted?

    But I’ll take that as a: “I do not know.” statement. In this case, ‘organic’ could mean no chemical dips, no anti-biotics, no food supplements, no vaccinations and no artificial insemination. At first glance, it SHOULD mean ALL of the above (and probably more I left out as the above list was off the top of my head).

    Besides, doesn’t the organic label designation appear to carry the most marketing punch for those who are mathematically illiterate?

  4. Rasa Deksniene

    Can you sell me 1 kg of the wool fiber in Sweden. I later of wool clothing.
    How much is wool and shipment to Sweden.
    Thank you
    Best regards,
    Rasa Deksniene

  5. Rohit Chopra

    i am interested in buying this sheep wool from Chile…..could you tell me the contacts , phone number, mobile, email address ?

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