Alma

Demand for Australian wool in China

In November 2004 Graham and Helen Morphett travelled to China on the second Elders Wool tour of China. Elders national wool manager Mark Rodda stated that "the aim of these tours was to gain greater knowledge and understanding of the country, culture, trading terms, methods of business and the opportunities and challenges for Australian wool in China in the future. The enthusiasm of Chinese processing companies continues to grow as they learn more about the Australian wool industry".

China has evolved as the world's wool leader in the 21st century. It is the world's largest wool scourer, woollen top processor, and woollen garment processor. We found that the Chinese are passionate about wool, and especially about Australian wool which they consider synonymous with high quality standards. The textile industry is very large in China, with wool as only one component. Wool is both a luxury fibre and an essential component of blends with other natural and artificial fibres, allowing different fabric properties and cost efficiencies. China imports nearly 60% of Australia's wool clip annually, and 70% of that wool is processed to be used locally in China's domestic market. This makes China very price-sensitive as they can't pass on any significant price increases to the local market, where the average wage is very low.
Overall the tour showed us the importance of China to the future of our wool industry. They like our wool, and want it in both fine and medium microns for the long term.