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China'S Demand Has A Deep Impact On Australian Wool Industry

2014/8/9 17:09:00 61

Techwool is one of the traders and exporters of "a href=" http:// "www.sjfzxm.com/news/index_c.asp" > Australia "/a", the largest fat wool and defatted wool traders. Its trade manager Lamb (JoshLamb) recently attended a forum in New South Wales town Gunning, pointing out that China is being proved to be the best partner in the wool industry at the same time. But it also cautioned that the majority of Australian wool production is exported to China every year, and too much reliance on single market is not conducive to the development of the industry. 
 the theme of this forum is "insight into sheep and beef market and production system". In explaining how to ensure the long-term benefits of the wool industry, lamb lists 3 main problems: the lack of high-quality fine wool, the shortage of new practitioners and the credit crunch in China. 2 of these problems may not be solved - the lack of market demand for fine wool and the entry of new operators. 
 lamb said that Chinese wool < a href= "http:// www.sjfzxm.com/news/index_c.asp" > product demand < /a > composition has great influence on Australian wool production. China's demand for wool is very important for Australian wool producers and exporters. But Chinese importers usually buy 21 micron fine wool and seldom choose to buy 18.5 micron fine wool with better texture. To a certain extent, this led to the decline of the fine wool market. In other countries and regions such as India and Europe, the local fine wool processing industry is booming, but these countries and regions have less demand to meet the surplus capacity of the Australian wool industry. 
 reported that 25 years ago, "a href=" http:// "www.sjfzxm.com/news/index_c.asp" > wool industry < /a > was controlled by Japanese and European processing and trading companies, but most of them now no longer exist. By the end of June this year, 72% of Australia's gross wool output was exported to China. But the slow growth of China's economy has also depressed the buyers and processors of wool. Lamb said that many Incorporated Company models of wool buyers and traders have withdrawn from the market under the influence of low returns. According to FarmWeekly quoted lamb as saying, "only 20 of the top companies in the wool industry are 1/4." Family traders still tend to stick to the wool industry. If Incorporated Company traders intend to invest 200 million or 300 million Australian dollars in the wool trade, they need to earn more profits than 1% (the average rate of return of the wool industry in the past five or six years), lamb explained. "This is not sustainable. It is not only sustainable in this industry, but also unsustainable from a commercial perspective." 
 Lam, frankly speaking, the excessive supply of fine wool in the market is due to the seasonal conditions of drying rather than the traditional form of low micron wool. Therefore, the only way to solve the current weak demand is to reduce and digest the amount of fine wool produced by drought in the market as soon as possible, but this will take time. Lamb said he hoped that after ten years, China's imports would only account for 50% of the total output of Australian wool, which means that another 50% of the wool was exported to other countries to avoid over reliance on the Chinese market - "this is the reality we must face." 
 Australian agricultural resources economy and Technology Bureau (ABARES) predicts that the growth of China's clothing retail sales will slow down, and the garment industry in the major developed economies will continue to turn to the production of synthetic fiber garments, which is expected to restrict the market demand of fine wool. Although prices will rise, Australian wool production will be further reduced in the next 1 years.