Buyers vacate market leaving wool industry in jeopardy
07 Jul '08
1 min read
The wool industry of Australia, after going through a tumultuous year with constant ups and downs, is now having auctions winding up for a three week break.
The most dramatic happening so far is the closure of some major buyers including Itochu and Graincorp.
Experts in the field strongly believe that it will turn in to a disastrous situation for the wool industry if it was to loose any more buyers.
New firms come over to fill up the empty spaces, but when giant buyers like Itochu wound up, the market suffers from the loss of a major competitor.
Losing an established exporter in the wool market undoubtedly creates more difficulty for the industry which even otherwise has to go through weak demand and lower remunerative prices.
However, it is believed that the market would get into full swing after the recess and when that happens, it could be possible for the entire industry to surge ahead.
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