Buyers Strongly Recommend New
Packaging For 1999 Wool Clip

By Colleen Schreiber

DENVER — The U.S. produces only about one percent of the world's wool, barely a drop in the bucket in terms of overall production. Because of today's global economy, however, that drop must be competitive in the bucket that is the international marketplace.

It's been almost a decade now since the sheep industry began a big push to educate growers in ways to better prepare their clips at the shearing level in terms of sorting, classifying and packaging their product according to international standards set by the Australians, the world's leading wool-producing country. Those changes were not easily accepted, but proponents of the changes say today that the industry is better for them.

Now growers are being challenged to make another change. This time the change involves the wool packaging material itself. This change was one of the major topics at the American Sheep Industry Association annual meeting here late last month.

Changes in wool packaging have been in the works for several years. Contamination and recycling problems, industry experts say, are the reason for the push to change. Burlap or jute bags have been faithful servants to the wool industry for well over 100 years, but the U.S. is one of the few places in the world where burlap is still used for packaging wool and mohair.

One problem is that burlap fibers contaminate the wool because they can't be dyed. The other problem is that burlap, an organic plant which comes primarily from India, takes years and years to decompose. That makes for good storage characteristics, but it has become a major issue for the wool industry because many countries that consume raw wool — Germany, for instance — no longer accept imported products in containers that can't be recycled. Others charge handsome fees for disposing of these products or they simply charge the importer the cost of shipping them back to the country of origin.

The Australians solved their contamination problem a few years ago by shifting to a high-density polyethylene (HDPE) wool pack. That shift, however, did not solve the recycling problem. These bags have also been used in the United States. Most recently the Australians developed a woven nylon pack which is non-contaminating and can be recycled. The problem is that at $14 to $16 each, these bags are cost-prohibitive in the U.S.

The U.S. sheep industry began to make a concerted effort to address the packaging issue in September 1997 with a task force made up of four of the largest wool processors in the United States: Burlington Industries; Forte, Dupee & Sawyer; Prouvost USA; and Wellman, Inc., as well as a manufacturer, warehouse managers and researchers.

Together the committee members outlined guidelines and developed a plan of attack. The industry was charged with developing a 100 percent recyclable, non-contaminating package that otherwise had the same qualities as traditional burlap bags. The new package had to be stackable, markable, affordable and permeable. Another major consideration outlined by the committee was that the new product be usable in traditional bag stands and hydraulic packers used throughout the industry.

"The idea of the packaging group was to make it where you as the grower have more customers," Wellman buyer Eric Whittington told listeners at the convention. "We need to get ahead so that we can compete on the world market, and the packaging materials, jute material, or burlap, as we know them now, are not accepted around the world. In the U.S. we have a very difficult time disposing of that burlap."

Tim Kooke, president and owner of Woolsacks Inc., Fredericksburg, Texas, and a member of the packaging committee, began work to develop this new package. Kooke, who in time accumulated 80 percent of the wool sack business with his burlap product, says the development of the new packaging material took longer and was harder than he originally thought it would be.

Last May he began searching for the right plastic. He worked with 10 different manufacturers before he finally selected one. Several different models were made and tested by the trade, and each trial led to improvements and adjustments. Some of these improvements included coating the bag with a rough texture to keep the wool from sliding back out during packing. Additionally, the bags are being manufactured with two different kinds of holes, small micro-vents which allow any moisture to escape, and larger holes for displacement of air during packing and closing of the bags.

The manufacturer now has two products available for the trade: a round film bag and the "backstrap," a square film wool pack that meets the international standard. The backstrap is designed to hold 400 pounds of wool and the round film bag, he claims, will hold as much as traditional burlap bags.

The biggest problem, warehousemen say, is that no one has really come up with a good way of closing the round film bag. Initial experiments involved rolling the top down to increase the thickness of the plastic and then sewing the bag closed in the traditional manner. That method has all but been abandoned because sewing plastic isn't like sewing burlap.

Another method that has been tried and is being used to some extent is overlapping the top, taping the middle with a special kind of tape, and then twisting and tying ears on the bag. There are reportedly some problems with the tape popping open when used in extreme cold.

The final closure method being tested is with woven polyester straps attached to the bag that are used to basically tie the bags closed. A similar method is being used on the backstrap.

The manufacturer believes it's only a matter of time before someone at the grower level comes up with a better way of closing the bags.

The backstrap, Kooke says, is comparable in price to the HDPE bags, somewhere around $7 to $7.25, and the round film bag is also comparable in price to the traditional jute or burlap wool bag.

Kooke admits there will be further adjustments made to the bags before they are fully perfected. No doubt, he says, adjustments will have to be made in the way the new bags are handled.

"As far as strength, the plastic bags are equal to the traditional burlap bags," Kooke insists. "The difference is the 'abrasion' factor. The plastic is tear-resistant and puncture-resistant, but it's not tear-proof and puncture-proof. People will have to be more careful when moving the bags. I recommend moving the packaged wool with dollies," Kooke says.

There has been some question about bag availability, but Kooke says getting the bags to the growers in time for shearing has not and will not be a problem.

Larry Prager, Center of the Nation Wool, said that for the most part, availability in his area has not been a problem. In the Midwest about 80 percent of the wool is baled in square packs and Prager has been able to get the backstrap without any problem. Mid-State Wool Growers in Columbus, Ohio also has a round film bag that is available and working well, Prager said.

There was considerable discussion about the progress of the new packaging at the U.S. Wool Marketing Association meeting held in conjunction with the ASI meeting. Despite the fact that the bags have not been fully tested and perfected, wool buyers voiced their opinions about going forward with the changes as planned.

As originally laid out by the committee, the plan was to have a phase-in of the new packaging material during the 1999 season with total compliance by 2000.

"In 1999 we'll be looking for the best put-up wool in the new packaging first," Wellman's Eric Whittington told listeners. "We'll move down the scale from there. It might be HDPE packages or warehouse graded wool until we get down to burlap bags."

Most buyers voiced similar statements.

The only accepted substitute, according to the committee, is "nylon" packs approved by the Australian-New Zealand wool industry.

"The challenge you have as a grower is keeping your market share," Whittington remarked. "Every time you have a product that is just a little off spec, you lose market share to someone else who is producing that product that meets international standards.

"We're not trying to push this program through," he assured listeners. "It’s simply because of business conditions. We need to put our best foot forward and be able to deliver a product that is usable by our downstream customers."

Prager agreed.

"For those people who have a quality clip, combing style wool with fairly good style and fairly good length, who traditionally sell to our East Coast mills, you're potentially limiting who might bid on your wool if it's not in a film package," Prager told listeners. "I think that’s the bottom line.

"Is it a requirement? Well no. It’s your wool. You can do what you want with it, but certainly for those growers who want to open up as many avenues as possible, they need to go to a film package in spring 1999."

Forte Dupee, Sawyer Co., says they will continue to buy wool in burlap until a viable alternative has been proven.

"There is confusion in our industry because no one knows what to go with because what is out there right now hasn't been proven," Forte wool buyer Leroy Keese says.

"That's one reason why Forte has chosen not to discriminate against wool packaged in the traditional manner. We simply don't have all the kinks worked out.

"Forte supports the move to these new bags," he continues. "We as an industry have to go that way and it’s very important that we get there and get there quickly, but to treat the growers this way with this really terrible market is not fair to the trade."

Mertzon Warehouseman J.D. Cook also served on the packaging committee and participated in several of the test trials.

"I just hate to see people put good long wool in burlap and have it discounted or not get it sold," Cook says. "I plan on writing all my customers to notify them of the change. As far as I'm concerned, we're converting to the new bags this season.

"I know we will have some problems," he continues, "but I don't think it will be anything that we can’t overcome."

Val Verde Wool & Mohair Co. manager Neil Kerr, Del Rio, has tested both of the new packages in the warehouse but thus far he says he hasn't had a great deal of success. The biggest problem he's had is finding a way to close the round film bags.

"We might be trying to put too much weight in the tube bags," Kerr says. "It seems that if we put more than 150 pounds in a bag, it rips."

Despite the problems, Kerr is making plans to make the change.

"I've been telling my customers that if their wool is 10 months or better, the buyers would prefer plastic. Most of the short wools are being packaged in burlap, however."

Felters, like Bollman Industries, say contamination isn't really a problem in short wools because the wools are all carbonized, which eliminates any of the contamination from the burlap bags.

"Bollman supports the move to plastic," buyer Jason Bannowsky says. "We believe it's good for the industry, but we will continue to buy paint-free short wools in burlap."

Rick Honaker, buyer for Entrenos Inc., believes a lot of good development has been done with the new packaging.

"I don't think the new bags will be as durable as the product we've had in the past, but it is a workable product," Honaker says.

"The mills are dictating that this is the direction we need to go and I think we have to listen to them," he adds. "That's what I'm telling my growers. There will be some of the poly-packs (HDPE bags) that are already in the shearers' hands that we will honor, but I think wool in burlap bags will be harder to move."

Honaker buys a lot of territorial wool, and so far the new packaging, primarily the square pouch, he says, seems to be working okay.

Experts estimate that 40 to 50 percent of the 1998 domestic clip is still in storage. That inventory, buyers say, will not be discriminated against, but they all stress that their first choice will be wools packaged in the new film packs.

"Because of the inventory, some wool packaged in the traditional manner will likely have to be purchased this season," Burlington wool buyer Tim Almond says. "But, we all made a pact that we would shoot for not buying anything that is not in plastic that is shorn after 1999. The old wool is not a problem.

"This is going to take patience on all our parts because I don’t think we’re there yet," Almond adds.

Eric Whittington, like other buyers in the industry, doesn't see a bright picture for the wool industry in 1999. And the recent announcement of a 25 percent cut in production by Burlington Industries only adds to the gloom.

"I’m afraid with the way things are shaping up that we will have a very large carryover of domestic wool in 1999. I can’t see the industry being able to support the domestic clip in 1999," Whittington told ASI convention-goers.

"There’s nothing that any of us would love to do more than purchase every pound of wool available in the U.S.," he said, but then added, "We’re not expecting to purchase wool with the bellies in, tags in, sweatlocks in, original bag wool on a greasy basis anyplace else in the world. I think it’s time that the U.S. sheep industry becomes proactive and tries to solve our problems to continue to stay in business."

Finally, he said, "We’re all in this together. It’s not a situation where we’re against you, by any means."

Like others warehouseman, Kerr believes the market plays a greater role in whether or not wool will be sold.

"If they want the wool, they'll buy it no matter what it's in," Kerr says, "but right now they don't want it."

"Changing the packaging is one of the easier things to change," Rick Honaker adds. "This market is the tough one."