For Chinese top manufacturers, high prices are not enough to worry about. The biggest concern for them is
Australian wool production decreased
Qiang Wang, general manager of the Australian Department of Wool Detection and Inspection Bureau in China, said last week
Wang Qiang
Given the current output, I fear that Australia cannot keep up with China’s demand. China is the largest wool processing country and needs 400,000 tons of fat-containing wool each year. China itself can only produce 100,000 tons. Currently Australia may supply about 150,000 to China. Tons of hair wash, so there is still a gap, China's demand is growing. If we want to consider the entire middle class in China, then 400 million people, so it can be said that it is the real basis for the future demand for Chinese wool.
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The China Wool Industry Agreement was held at the Lal Lal Estate near Ballarat.
Mr. Wang spoke to representatives from 80 major wool processing companies in China.
The wool produced in Australia is second to none, no country can match Australia, but we must increase production, (now) production is too low
In the past, industries were often decentralized, with each link taking care of each other. However, we need to focus on the overall situation. Farmers and processors should cooperate
Producers need to focus on the comfort of wool because the fiber dispersion is still high.
Now that wool is considered a luxury product, more and more fine wool is used in the production of personal clothing, so comfort is the ultimate goal pursued by people.
Chinese buyers did not show great resistance to the high prices of Australian wool, but the processors were worried because there was no clear indication of what the final product's fall/winter trend was.
Bing Feng, the head of Ningbo Rising Textile Trading Company, also agreed that the main challenge faced by processors is output.
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Wool production dropped by 50% in 20 years
Feng Bing said:
We can work together and China will produce suitable fabrics. Australia is responsible for raising sheep and producing high-quality, cheaper wool to create the best products together.
China's industry is experiencing rising production costs and low profit margins, so it is for processors.
Survival of the fittest
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CKIA President Qianlong Ji (transliteration) said
20 years ago, Australia’s wool production was 1.2 million tons, and only 340,000 tons this year’s season.
Despite the recent closure of some large manufacturing plants, the Chinese processing industry is still developing smoothly and needs more quality Australian wool.
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