Agribusiness firm Elders will be closing its wool trading arm. The company says it is very expensive to carry on the wool trading business.
However, the company's wool broking division will continue to function. It will sell wool on behalf of the producers, but the company will no longer buy wool at any of the auctions.
The wool trading division of the company was comparatively small, but one which required a lot of capital, according to Malcolm Jackman, Elders CEO.
He said that the company was allocating AUD 20 million for trading in wool, and that money can now be utilized in the firm's other trading divisions, that give a much better return.
The latest decision of Elders comes after it exited from wool processing operations, following the sale of its stake in Nanshan wool combing plant in China about a year ago.
Fibre2fashion News Desk - India
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