The solid export performance of South African wool for the 2006/07 season ending in June was backed by relatively good production conditions, regardless of reported average to mostly below average rainfall during the 2006/07 summer period in some areas (west in particular). The five top importing countries for South African wool in 2006/07 were China, Italy, Czech Republic and Germany.
China resumed buying South African greasy wool in the 2005/06 season after placing an embargo in 2001 as a result of the foot and mouth epidemic. For the first time ever in 2006/07 China became the largest export destination of South African wool, surpassing the traditionally big European markets.
Along with the lifting of the 2001 embargo, a decline in Australian wool production in recent years due to drought also encouraged greater Chinese participation in the South African market. Another contributing factor is the improved quality of the South African clip.
There is an optimistic outlook for the future exports of South African wool. This optimism is based on predicted favourable production conditions and increased international demand for high quality clip.
Australian Wool Innovation Limited
marketing@alchempro.com
