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Valuing quality attributes of Australian merino wool

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  • Nolan, Elizabeth
  • Farrell, Terence
  • Ryan, Madeleine
  • Gibbon, Candice
  • Ahmadi-Esfahani, Fredoun Z.

Abstract

We measure the relationship between clean prices of individual lots of wool sold at auction and a range of characteristics of the raw wool. Based on the data for 111,440 fleece lots sold in the 2008–2009 auction season, five hedonic models are estimated to determine the premiums and discounts associated with each wool characteristic in five micron categories. Several wool characteristics exhibited significant nonlinear relationships, and therefore, joint density functions were assessed where appropriate. The results indicate that fibre diameter has the greatest influence on price in all markets. Brand contamination, higher levels of unscourable colour and vegetable matter contamination were found to negatively influence price.

Suggested Citation

  • Nolan, Elizabeth & Farrell, Terence & Ryan, Madeleine & Gibbon, Candice & Ahmadi-Esfahani, Fredoun Z., 2014. "Valuing quality attributes of Australian merino wool," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 58(3), July.
    • Handle: RePEc:ags:aareaj:262408
    DOI: 10.22004/ag.econ.262408
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    Cited by:

    1. Kim, Jun Sung & Mitchell, Sophie Deborah & Wang, Liang Choon, 2019. "Hedonic pricing and the role of stud fees in the market for thoroughbred yearlings in Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 63(3), July.
    2. Edward Oczkowski, 2016. "Analysing Firm-level Price Effects for Differentiated Products: The Case of Australian Wine Producers," Australian Economic Papers, Wiley Blackwell, vol. 55(1), pages 43-62, March.
    3. Fleming, Euan & Cottle, David, 2015. "Is the Australian wool industry efficient at converting wool into value?," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 23, July.

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