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Australia Wool Prices need to Stay Strong

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AWI Chairman, Ian McLachlan said that the current range of prices for all Australian wools needed to stay strong to encourage the production of Australian Merino wool.

Mr McLachlan said at its recent levels, the Eastern Market Indicator encourages the supply of Australian wool.

“At around $10.00 clean per kg, the world wool industry can expect the supply of Australian wool to be maintained and improved,” said Mr McLachlan.

“The supply of Australian Merino wool is always subject to environmental conditions such as drought, which has impacted the wool industry over the last five years.”

Mr McLachlan agreed with recent comments made by the President of WoolProducers Australia, Robert Pietsch, who said that if the world wants more wool then they are going to have to pay for it.

AWI’s market analysis and feedback from major retailers shows that there is genuine demand for Australian medium micron Merino wool, which is at its lowest supply level for the last few years.

Mr McLachlan reiterated what he said to the global industry at the IWTO Conference in Edinburgh in late May, stating that we need prices at the current level or above to encourage woolgrowers to continue to increase the quality and quality of the remarkably improved, globally recognised fine wool that Australian woolgrowers produce.

”It is pleasing that the prices for finer micron wools recently also increased to a level which was rebuilding the confidence of these growers,” said Mr McLachlan.

“For the Australian wool industry to reach a sustainable 500 million kilogram of annual production every year, it needs stability at these prices over the next few years.”

AWI, and the soon to integrated Woolmark Company, will provide a strong platform to support the wool apparel industry with research, development and marketing which will underpin the natural and performance qualities of Australian Merino wool.

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