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Category:Media franchises introduced in 2006Wool prices are unlikely to ease much
Jaspal Bal, Associated Press
- Dec. 10, 2012 8:42 am
Skilled wool growers and traders are urging the government to adopt new domestic wool policies to support domestic wool production, in the face of rapidly rising wool prices which could force large-scale wool producers to shift to other markets.
The figures released yesterday by the Australian Bureau of Statistics show that prices for wool are nearly at their highest level since mid-2010 and may reach as much as $9.30 per kilogram.
"With higher prices, more wool will be produced, and we'll see more domestic production," said the group, which includes wool growers and traders from Australia and New Zealand.
It said they are concerned that growers will find it harder to access credit and have less capital to invest in their operations.
"Prices are rising very quickly, and we are experiencing the consequences of rising wool prices now," said Nick Ogle, a spokesman for the Australian Wool Association.
"If prices continue to rise, there is the potential for closures in New South Wales and Queensland. There is also the potential for New Zealand and Australian producers to migrate to Thailand, Indonesia and Vietnam, which are all receptive markets for wool."
The government said it is considering the recommendations of the first review of wool policy that was conducted in 2010. It has been handed down for public consultation.
Australian wool exports, which have fallen from a peak of more than 5 million kilograms in 2007-08, last year fell to 4.2 million kilograms, mostly due to the collapse in the Chinese wool and clothing market.
Despite the large annual reductions in wool shipments, Australian wool exports still remain much higher than they were in 2008, before the global financial crisis hit.
"The latest data shows wool prices be359ba680
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