Wool grease prices increase as consumers buy more cosmetics

Published Jul 31, 2020

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Wool prices may have declined these last few months but demand for wool grease has actually been on the rise. That's according to Michell Wool chief executive Steven Read, who said increased buying of cosmetic products online during the coronavirus pandemic had played a big part in the price rise. Mr Read described it as the "lipstick effect", where people bought moderately-priced luxury items during tough times to make them feel better. "And cosmetic products fall into that," he said.

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So how is wool grease turned into lipstick? He said grease is removed from wool in the scouring process and it is then refined into lanolin. "Every wool scouring plant in the world would consider wool grease as their most valuable by-product, and this is certainly the case for the two Michell processing plants we operate, one in Adelaide, and the other in China," he said. "Lanolin is used in cosmetic products like lipsticks and hand creams and at times even shaving creams, as well as some medical-grade pharmaceutical products." Mr Read said wool grease prices had been volatile in the last decade. "In the last 10 years, wool grease has been as low as 250USc/kg and as high as 800USc/kg," he said. "Six months ago it was around the 300-320USc/kg mark but we're now nudging up to the 400USc/kg level. "We're still well off those record peaks but they're certainly trending up." READ MORE: He said the market was driven by supply and demand. "Supply has been down but more importantly, we've ...

Source: Farm Online National