Wool recovery puts money in towns: [1 Edition]
Stapleton, John. The Australian [Canberra, A.C.T] 08 June 2001: 36.
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Abstract
Portfolio manager for Elders VP in Geelong Peter Fitzgerald said the better returns from the rising wool market have buoyed the industry. "Optimism has returned," he said. "The growers are getting better returns, and that has lifted the entire mood of the industry."
"Wool is standing its ground," he said. "Garment manufacturers are showing a preference for wool. Combined with strong sheep/meat prices most growers are currently experiencing reasonable returns. This upturn in commodity prices will be of great assistance to all rural communities."
Director of wool and livestock at NSW Farmers Joe Lane said the increase in wool prices was producing a far more positive outlook. "It's good for farming families and local communities as farmers begin spending again in their local economies.
AT long last the prospect for wool is looking rosy. While fibre prices for acrylics and cotton have reached near- record lows, wool prices have defied the trend.
World wool supply is expected to decline in 2001-2002 due to further cuts to wool production in key producing countries.
It's all good news for Australian woolgrowers, according to the latest market analysis from Australian Wool Innovation.
Wool prices are at their best in five years, and all expectations point to continued upward movement.
Strong demand from Europe and China are behind wool's strong performance.
Australian Bureau of Statistics figures for the 10 months to April show a 47 per cent jump in exports to China to just over a billion dollars, Italy an increase of 32 per cent to $665 million and Germany a 96 per cent rise to $129 million.
AWI spokesman Chris Wilcox said it appeared the better times would continue to flow for woolgrowers, as the economic downturn hitting the US had not affected key European or Chinese markets.
Supplies in Australia were also continuing to fall, with just 49,000 bales listed for sale this week, when traditionally more than 100,000 are on the market.
Strong selling from the official stockpile by WoolStock Australia this season has run down stocks.
Total wool production in Australia is expected to fall almost 1 per cent in the next financial year, but supply will be down by a more substantial 12.6 per cent due to the stockpile rundown. It's good for prices, and for the industry as a whole.
"The trend to reduce flock numbers is slowing thanks to encouraging wool prices, particularly for the finer wools, but graziers are likely to remain with the now characteristic diversified enterprise mix while other commodity prices, particularly beef, remain buoyant," Mr Wilcox said.
Portfolio manager for Elders VP in Geelong Peter Fitzgerald said the better returns from the rising wool market have buoyed the industry. "Optimism has returned," he said. "The growers are getting better returns, and that has lifted the entire mood of the industry."
President of the National Farmers Association Ian Donges said the stabilisation of wool prices since they peaked before Easter has meant many rural businesses are investing extra funds into fertilisers, stockyards and machinery.
"Wool is standing its ground," he said. "Garment manufacturers are showing a preference for wool. Combined with strong sheep/meat prices most growers are currently experiencing reasonable returns. This upturn in commodity prices will be of great assistance to all rural communities."
Director of wool and livestock at NSW Farmers Joe Lane said the increase in wool prices was producing a far more positive outlook. "It's good for farming families and local communities as farmers begin spending again in their local economies.
"There is now increased demand for wool properties as people see positive returns on their investment."
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