Fine figures for Aussie wool
THE expectation for sustained, strong retail sales growth will support continued demand for Australian wool exports and strengthening prices for producers.
Senior ABARES economist, Dr Caroline Gunning-Trant, said the price of wool in Australian dollars had been increasing since 2014.
“In the two years since early January 2015, prices have risen by about 35 per cent,” Dr Gunning-Trant said.
“The Australian Eastern Market Indicator (EMI) wool price is forecast to rise by 8 per cent in 2016–17 to around 1360 c/kg.
“Prices are expected to peak next year before easing in real terms as wool production increases.
“And by the end of 2021–22, prices are expected to still be relatively high at around 10 per cent above the 10 year average in real terms.
“The upward trend in prices reflects the constrained supply of apparel wool—given lower flock numbers—and firm demand, particularly for fine wool.
“Wool demand is continuing to grow in the European Union and the USA—the major international markets for imported clothing,” Dr Gunning-Trant said.
“And in China, wool consumption is forecast to grow more strongly because of relatively high rates of economic growth and increasing domestic consumption of luxury woollen textiles.”