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Boom in Uruguayan wool sector reported
Sheep meat market also remains strong
Despite a prolonged decline in herd size, the Uruguayan wool and sheep sector is experiencing a boom driven by record international prices. Wool prices have reached their highest level in at least three years in the South American country, reflecting a dramatic increase in the Australian market.
The Australian Eastern Market Indicator (EMI) reached $9.61, its highest level since February 2023, driven by the biggest weekly increase in six years (+7%) and an 18% increase last month. Corriedale wool and cross-bred wool have increased by 45% since June, while Merino wool lots of 18 microns or less have increased by up to 25% this season. The market is driven by historically low global stock levels and increased demand, particularly from China, where the recent Nanjing Wool Fair recorded the calmest trading environment since 2018.
Uruguayan production is mulesing-free, which represents an important competitive advantage to comply with the strict RWS or “Non Mulesed” animal welfare certifications required by the European textile industry for tops and yarns produced in China.
Recent transactions reported by the Uruguayan Wool Secretariat (SUL) show that fine merino wool (18.8 microns with RWS certification) is being sold for US$7 per kilo, one dollar more than the previous month.
The sector is going through a bittersweet moment, as the price boom occurs in a context of historic decline in the national sheep herd, which fell 11.2% to a historic low of 4.75 million heads, according to preliminary data.
This sharp drop, despite a strong recovery in meat prices, suggests that wool was the missing factor to stabilize the herd. The sector has struggled for decades against competition from cheap synthetic fibers derived from petroleum and faces obstacles such as the impossibility of exporting bone-in sheep meat to certain markets, such as the European Union, due to the vaccination protocol against foot-and-mouth disease.
Analysts project the upward price trend will continue, setting the stage for the “biggest wool harvest in decades.” This suggests that wool may be returning to its place as an essential product for the good maintenance of Uruguay’s natural landscape.
However, the sheepmeat market remains strong, with low supply and rising prices, showing a recent increase of around 10% in the value of sheep and lambs. Sheep slaughter for 2025 is 22% lower than in 2024, which contributed to the decrease in the total herd.
With weekly export volumes fluctuating after a recent sharp decline, the 30-day moving average price for sheepmeat remains at a remarkable $5,542 per tonne, up 41% year-on-year.