Wool mills at full capacity as positive signs point to improved market

Australian woolgrowers are set to enjoy improved market conditions as China’s wool industry returns to normalcy and mills get back to full capacity. Australian Wool Innovation chief executive John Roberts said the wool industry’s peak research, development and marketing company’s network of offices were reporting positive signs for wool sales across the year. “There is a real sense that 2023 will be a better year than 2022,” he said. “Our team in China has told us that a high degree of normalcy has returned after the two-month long Omicron outbreak. “Most of the textile mills are operating in full capacity since early January.” Mr Roberts said China’s GDP was set to bounce back to a level of optimism that remained high among Chinese consumers, with more than half of surveyed respondents believing their household income would increase during the next five years. “With about 40 per cent of Australian greasy wool consumed by domestic consumers in China — that optimism should flow through to more sales,” he said. “In Italy, our partnership with Prada Luna Rossa for the next America’s Cup has led to more than 15 other brands in an approach to us to use wool in more sporting and outdoor wear. “In Japan, the most recent winter campaign yielded a significant 12.9 per cent uplift in sales of the partner’s wool category, totalling $26 million in sales — wool’s eco-credentials, particularly it’s biodegradability, have resonated with Japanese consumers.” Mr Roberts said there had been renewed buying interest this year for Australian wool out of India as key mills plan expansion. “The recent free trade agreement between Australia and India is another spur for activity,” he said. “The recent launch of the Circle Sportswear supernatural runner with 65 per cent Australian Merino wool and completely biodegradable sole has prompted other brands to explore having AWI’s marketing arm The Woolmark Company logo on their items. “Last year’s ‘Wear Wool, Not Fossil Fuel’ campaign continues to resonate with consumers wanting a top-quality natural fibre instead of synthetics.” Mr Roberts said the 3-D billboards in New York’s Times Square and London’s Piccadilly Circus showcased the difference between wool and synthetics in dramatic fashion. “Taken together these are positive signs but as the last few years have shown us there are no guarantees of success,” he said. The positive sentiment is shared by Italian luxury fashion brand Prada. Prada Group managing director Lorenzo Bertelli was glowing in his praise of the brand’s partnership with The Woolmark Company. “The performance of wool compared to synthetic materials is on the highest level,” he said. “Wool is an active fibre changing the wearer’s body temperature and the feel is much more pleasant and so I believe being able to use it for products which are very technical — it was a challenging goal but we are very satisfied with what we have been able to achieve.” Australian Wool Innovation is the wool industry’s research, development and marketing company. It is a not-for-profit and receives contributions from woolgrowers and also the Commonwealth government. Australian woolgrowers own the Woolmark Logo, one of the world’s most recognisable fashion logos.