Contemporary issues in the Australian wool industry Dr Kerry - - PowerPoint PPT Presentation

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contemporary issues in the australian wool industry
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Contemporary issues in the Australian wool industry Dr Kerry - - PowerPoint PPT Presentation

Sep 01, 2022 119 likes •404 views

Contemporary issues in the Australian wool industry Dr Kerry Hansford Quality and Training Program Manager Australian Wool Exchange Contemporary issues in the Australian wool industry 1. Changing wool industry demographics. 2. Wool supply.

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Contemporary issues in the Australian wool industry

Dr Kerry Hansford Quality and Training Program Manager Australian Wool Exchange

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Contemporary issues in the Australian wool industry

  • 1. Changing wool industry demographics.
  • 2. Wool supply.
  • 3. Fibre identity.
  • 4. Affluent consumers with a social conscience.
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Contemporary issues in the Australian wool industry

  • 1. Changing wool industry demographics.
  • 2. Wool supply.
  • 3. Fibre identity.
  • 4. Affluent consumers with a social conscience.
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Within Australia

  • Farming population is ageing

Ø In 2001, 68% of self-employed sole operators and employees were 45 years or older Ø 2007 Government walk-off subsidy

  • Increase in size of farming operations

Ø Between 1993 and 2004, farming enterprises with an income greater than $400,000 increased from 12 to 20% of total

  • Farms that cannot scale up, off-farm income is

increasing

Ø In 2004, 40% of farming enterprises with an income less $100,000 sourced 91% of their income off-farm

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Within Australia

  • Reduced Australian value-adding

Ø Only a few processing companies left in Australia, some relocating overseas

  • Decreased number of wool industry companies

Ø Consolidating smaller companies into larger ones Ø Operations closing down

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Outside Australia

  • Traditional markets (Europe) less active
  • Approx. 70% exported to China (250-300mkg c.f.

60mkg Italy)

Ø 50% consumed domestically. 50% exported with Japan a major destination

  • Wool manufacturing demand in China expected to

nearly double over 5 years to 2010

Ø Major retail markets Europe, China, Japan, USA

  • Emerging supply chains (India, Vietnam, Sri Lanka as

well as Bangladesh)

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Wool Exports by Country

100 200 300 400 500 600 700

1 9 8 6 1 9 8 8 1 9 9 1 9 9 2 1 9 9 4 1 9 9 6 1 9 9 8 2 2 2 2 4 2 6 Year

Wool Products Exported (M kg)

China Italy Japan Other

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Contemporary issues in the Australian wool industry

  • 1. Changing wool industry demographics.
  • 2. Wool supply.
  • 3. Fibre identity.
  • 4. Affluent consumers with a social conscience.
  • 5. The environment.
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Wool Prices in USD and AUSD

200 400 600 800 1,000 1,200 1,400 16/12/1983 16/12/1985 16/12/1987 16/12/1989 16/12/1991 16/12/1993 16/12/1995 16/12/1997 16/12/1999 16/12/2001 16/12/2003 16/12/2005 16/12/2007 Eastern Market Indicator (c/kg clean) EMI AUSD EMI USD

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Decline in wool production

  • On-going drought

(inconsistent seasons)

  • Low wool prices
  • Higher prices for other

agricultural commodities

Pejar Dam Near Goulburn NSW Drought-affected land near Cowra NSW

Photos: Blog - www.israelated.com/node/3412

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200 400 600 800 1,000 1,200 1,400 16-Dec-83 5-Sep-86 3-Feb-89 14-Jun-91 15-Oct-93 24-Jan-96 15-Oct-97 12-Aug-98 6-May-99 15-Feb-00 16-Nov-00 14-Sep-01 9-Jul-02 1-May-03 4-Mar-04 15-Dec-04 19-Oct-05 23-Aug-06 13-Jun-07 Eastern Market Indicator (c/kg clean) 200 400 600 800 1000 1200 Australian Wool Production (M kg greasy) EMI AUSD Wool Prod

Wool prices & production since 1983

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5 10 15 20 25 < 1 8 . 5 1 9 2 2 1 2 2 2 3 2 4 2 5 / 2 6 2 7 / 2 8 2 9 / 3 > 3 Diameter (µm)

% Australian Wool Clip

Change in diameter profile

n 1993 – approx. 8% less than 19 µm n 2006 – approx. 31% less than 19 µm

Note: Australia produces approx. 25% world’s greasy wool and 60% world’s Merino wool

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Change to sheep meat breeds (shedding)

Merinos with Damara Cross Lambs Damara Ewe Lambs Dorpers

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Dark and medullated fibre contamination

Scoured Wool Yarn

Fabric

Fabric

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Contemporary issues in the Australian wool industry

  • 1. Changing wool industry demographics.
  • 2. Wool supply.
  • 3. Fibre identity.
  • 4. Affluent consumers with a social conscience.
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World fibre production since 1900

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How is wool viewed?

Negative perceptions

  • Compared with man-made fibres, wool:

Ø Is highly variable in its physical attributes (e.g. diameter, length,

strength, level of impurities such as grease, dirt, vegetable matter)

Ø Requires long and complex steps in processing Ø Is often considered to be itchy and prickly, heavy weight, not suited to summer, formal, expensive, hard to look after…..

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Enhancing wool’s reputation

Positive qualities

  • Man-made fibres have been trying to emulate

many of wool’s natural properties:

Ø Insulation, resilience, moisture absorption, moisture buffering, odour absorption, breathable, flame resistance, therapeutic, renewable, biodegradable, controlled felting…..

  • Wool industry continues to address:

Ø Improved comfort (softness next to skin and fabric handle), easy- care (machine washability, tumble drying, crease resistance), pilling resistance, light-weight, shape retention, wrinkle recovery, colour fastness…..

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Versatility, performance, beauty

Photos: M. Campbell, Taking Wool into the 21st Century, 2004

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Contemporary issues in the Australian wool industry

  • 1. Changing wool industry demographics.
  • 2. Wool supply.
  • 3. Fibre identity.
  • 4. Affluent consumers with a social conscience.
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Attitudinal changes with increased wealth

Food, shelter, clothing Food safety reassurance Country, region Quality standard, luxury Doing good. Environment, animal welfare, fair trade Maslow’s hierarchy of needs

Self-actualisation Esteem needs (status) Social needs (sense of belonging) Safety needs Physiological needs (calories, protein, water)

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Challenging how industry operates

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Organic, ethical, sustainable

  • Defined as farming without the addition of artificial chemicals.
  • Pest, disease and weed control to encourage and maintain natural

biological processes.

  • Aims for optimal production rather than yield maximisation.
  • Seeks to operate as a closed system, using renewable resources

and best environmental management practice.

  • Produced according to recognised animal welfare standards.
  • Certifiable: National Standard for Organic and Biodynamic Produce
  • Note: “Organic certification” is not a guarantee of the wool

fibre’s characteristics.

Source: S. Seaman, Organics and Food Industry Development, NSW Department of Primary Industries

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Continuing trend?

Recent news clippings (Oct 2007):

  • Buyers seek out sustainable fabrics (France)
  • Organic cotton production climbs to 53% (USA)
  • Turkey tops organic cotton league (UK)
  • New CRDC Chief wants to double water efficiency

(Australia)

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Or a fad?

  • ‘Green’ attitude

Ø It exists and affects purchasing decisions

  • Wool’s advantage

Ø Association with natural, renewal, biodegradable

  • Retailers want environmental & ethical messages

Ø But, short-term use of organic promotion needs to be tempered with longer-term effort to ensure and ethical and sustainable focus is developed

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Change is essential for progress…..

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Australian Wool Exchange

For more information visit

www.awex.com.au

Australian Wool Exchange 318 Burns Bay Rd Lane Cove NSW 2066 02 9428 6100