Wool Customers Change

Wool Customers Change

The profile of New Zealand wool exports has seen a significant change in the current season.

Wool Exporters President Mr John Dawson said this week that the problems in the Euro-zone and the increasing strength of China as the world's major textile producer has seen a marked swing in where New Zealand wool goes.

"Compared to last season, our European customers are taking much less wool, with exports down 14.5%. But China continues to grow and so far this season has taken 15.4% more than at the same time last year. Wool exported to Australia is down a whopping 75%," he said.

Mr Dawson said that the European Union now accounts for only 31% of our markets, whereas China has leapt to a 47% share.

Overall, total exports to the end of January 2012 were down by 8%. Better wool prices meant that in the same period the export value was up by 28%.

Mr Dawson said that despite recent media claims, there is not a great swing in greasy wool exports to China. So far this year, China has taken 62% of its wool greasy, which is actually 1% less than the proportion at the same period last season.

Mr Dawson said that the sudden drop in exports to Australia is a real concern.

"We have always had a very strong market for good carpet wools in both Australia and New Zealand but this has changed very rapidly in the last year or two. The oil giants have been pushing hard into the carpet market and solution-dyed nylon carpets have been heavily promoted around the world. The impact of that in both Australia and New Zealand has been very marked and the wool carpet industries in our two countries are really struggling. The drop in exports to Australia reflects this and it has to be a major concern for the industry in general and wool growers in particular."

Mr Dawson said that wool is currently in steady demand but the high exchange rate against our major trading currencies, USD, GBP and Euro is making our wool very expensive for our customers and is undermining New Zealand's ability to capitalise on the renewed demand.

ENDS

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