Trends in the Australian Wool and Cotton Industries

1
Trends in the Australian Wool and Cotton
Industries

• Des Pearson
• Manager Trade Development
• Wool and Dairy
• Department of Agriculture, Fisheries and Forestry
  - Australia

2
Wool

• Industry Status
• Emerging from substantial change and restructure
• Transition from Reserve Price Scheme to free
  market,
• Privatisation of Wool Research and Promotion
  Organisation,
• Elimination of stockpile.

3
National Flock Numbers.

4
Wool Production
5
Market Price
6
Exports
7
Outlook for Wool

• Short term
• No stockpile lower supply price volatility
• Medium term
• Demand mirroring World economic growth
• Price parity with other fibres

8
Cotton

• Industry Status
• Tumultuous decade
• Early 1990s increased production
• Mid 1990s drought
• Late 1990s increased production
• Current drought

9
Prices, Plantings and Production.
10
Exports
11
Outlook for Cotton

• Production
• Fluctuating on price and rainfall
• World Market
• Supply exceeding demand
• Slight price increase as stocks limit impact of
  declining supply

12
Conclusion

• Wool and Cotton prices declined over last decade
• Asia is the key export destination for Australian
  wool and cotton
• Improved world economic growth should improve
  demand for wool and cotton