Vince ODonnell

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Outlook for wool and sheep meat

• Vince ODonnell

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Is this the turning point ?
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Gross value of production
Ab
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• Key points for today..

Lamb prices remaining high but easing Wool
prices continuing to decline in real terms
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Australian lamb
Price
Consumption
Exports
c/kg (2005-06 )
kt
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Sheep numbers by zone
Total
Wheat sheep
High rainfall
Pastoral
million
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Micron by zone
micron
Pastoral
Wheat sheep
High rainfall
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Micron distribution
1994-95
2004-05
kt
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Key demand issues

• Consumer spending patterns
• Fashion trends
• World fibre consumption expanding
• Wool consumption declining
• Increasing competition among fibres

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World fibre production
man made
cotton
wool
kt
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Ratio of fibre prices
Wool/polyester
Wool/cotton
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Conclusions

• Value of exports gt4b
• Focus on sheep meat
• Competition from other fibres
• Pressure on prices
• Adjustment - Productivity

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(No Transcript)
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Micron by type of producer
micron
Predominantly wool producers
Predominantly sheep meat producers