Wool conference highlights bright industry outlook despite major slump in production 

By Amanda Copp, Apr 18

More than 400 people converged on Sydney this week to discuss the latest wool trends, innovations and what the future will bring for the industry.

Wool production is at a 70 year low globally, but is still out-performing most other commodities.

While a drop in supply can mean good things for prices, International Wool Textile Organisation chairman Chris Wilcox said that global demand will drive what happens to prices in the next 12 months.

"Supply may win the battle, but demand will win the war."

He said retail sales around the world are seeing slower growth rates.

"That's where wool can be placed, in particular given we have low wool production and low wool supply."

He said the particular downturn in super fine-wool prices is a massive increase in supply, but not huge demand.

"The growth in demand is slower than what we've seen in the supply, so we've seen something of an imbalance.

"Once we see a bit of a pull back in production of that super-fine wool, we'll see a more sustainable balance and more sustainable prices."

Chinese market domination waning

A large contingent of Chinese delegates were there, as well as buyers and sellers from all over the world, including Argentina, Uruguay, Italy and New Zealand.

China buys 70 per cent of Australia's wool clip, but there is increased demand in Europe.

Mr Wilcox welcomed the rising European interest, because it acted as a counter to Chinese dominance in the market.

"A shift in the global, China-dominated demand for raw wool will push up wool prices everywhere."

Part of the shift in demand was due to an economic slowdown in China.

"We're seeing some uncertainty with the transition of the Chinese economy to a more mature market that's more focused on consuming over manufacturing.

"That's a good thing in the long term but it's going to take time to move through that transition, so we are seeing some uncertainty about what's happening in China."

The number of China's wool processing plants have dropped from 2500 to 2000 in just five years.

Garments in Sport

Craig Vanderoef is the senior director for Global Running Apparel and Customisation with Adidas in Germany, and was in Australia for the conference.

He said sport wear has traditionally been dominated by synthetic fibres, but characteristics of natural fibres like wool provide exactly what their products need.

"Wool keeps you cool when it's hot and warm when it's cold - that's what we've been trying to do with synthetic fibres forever."

Another problem synthetics haven't solved is smell.

"You take that shirt off, throw it in your gym bag and it smells like you've been working out even after you wash it," Mr Vanderoef said.

"Wool is anti-microbial and anti-odour, just by nature and those two things alone make it really exciting."

Sustainability the key

Bruna Angel, senior analyst at PCI Fibres from the UK says the fact that wool is clean and green and sustainable should be emphasised more in the future.

"Wool, we all know that it's biodegradable, which is great, but I don't think the message has gone out in a very cool or very modern way, that we as consumers want to aspire to.

"I would take recycling of wool post-consumer textiles, that's old clothes, also post-consumer household items, like carpets, like upholstery and go into the into the insulation business.

"Insulation today is a real high-tech industry and very high quality, insulation for noise in many of our earphones and for cars, why does it have to be polyester? Wool is the perfect product for that.

"The fact that oil prices have declined, means that the cost of producing manmade fibres has also declined so we are seeing very very cheap manmade fibres over the last six months."

IWTO president, Peter Ackroyd says the wool industry has to change or die.

"We've deliberately brought in speakers to talk about fashion, to talk about interiors, sports wear, "athleisure", to show that wool is multi-dynamic, and of course the most environmentally friendly fibre."

"We've done several experiments with wool and wool is really the only biodegradable fibre.

"We actually buried a sweater in the grounds of Clarence House in wool and buried one in acrylic, within six months, the wool one had biodegraded and the acrylic we just shook off and hung it back on the racks of a retailer that I won't mention."

Young people are the future

The wool industry in Australia and elsewhere was for a long time perceived to be an old fashioned fibre and a staid industry resistant to change.

But many young people from around the world are now embracing careers in the multifaceted wool industry.

Young professionals such as Argentinian Mariano Guerra were a powerful presence at the conference in Sydney

"My passion is for natural fibres, sustainable production and the relationship with the farmers and with the clients in my country and all around the world.

"It's fantastic and we are able to know different people from different origins and we all share the same passion.

Monica Ebert grew up on a sheep farm in the US and works in the small wool industry in Kansas.

"Everyone gets a long really well when we get together at events like this, it's just like a big family reunion."

She said wool really gets under your skin.

"We're actually seeing a lot of manufacturing come back to the United States so we're seeing some really cool pop-up brands that are farm to fashion, all US products, all manufactured in the United States and seeing that take off, we're seeing producers getting more excited about the wool industry in the US."

https://www.abc.net.au/news/rural/2016-04-07/wool-conference-talks-about-bright-future/7306672