Record-high wool price leaves Australian growers in shear delight

The price of wool has reached an historic high after decades of poor returns and Australian woolgrowers are saying the market is stronger than it has been in 30 years.

The price signal, the eastern market indicator, reached a record $18.30 per kilogram this month, double where it was eight years ago. The hike has been driven by strong demand from China and European fashion houses, as well as growing interest from shoe and sportswear companies in the US.

While wary farmers are reluctant to call it a boom, the Australian Wool Innovation chief executive, Stuart McCullough, is emphatic.

“It’s a boom, all right. I’ve been in the industry for 30 years and I can’t remember it being this good,” he said. “I don’t see any reason it would slow down soon. We have 300 million middle-class Chinese and wool will always feature in the spending habits of the wealthy.”

Almost 80 per cent of Australian wool exports go to China. There is also strong demand for high-quality superfine wool from Italy.

McCullough said a trend towards renewable and biodegradable fibres, particularly with younger generations, is bringing new opportunities. He said the popularity of “athleisure” – clothing suitable for exercise and casual wear – has created a great entry point for Australian wool into the US market.

The AWI, which engages in research and marketing to promote Australian wool abroad, has been working on product development with major brands, such as Adidas, Nike and Puma, to incorporate wool into their shoes and sportswear.

Source: theguardian