Oz wool grows off China's back

Woolgrowers' group, Australian Wool Innovation (AWI), further strengthened its trading relationship with the Chinese textile sector at the Intertextile Apparel Fabrics Show in Shanghai last month.
AWI, Australia's sole exhibitor at the world-acclaimed trade expo, garnered the interest of many Chinese manufacturers looking to improve the quality of their fabrics and yarns. Speaking at the exhibition, AWI deputy chairman Brian van Rooyen said Australian Merino wool had a very good reputation worldwide, which AWI was keen to exploit.
"We are getting many inquiries, particularly from Chinese manufacturers, looking for the trans-seasonal versatility of Australian wool. China is the world's second largest wool producer behind Australia, but because of the difference in wool quality, there is little competition. We now have connections with many wool processors in China, so there are enormous opportunities for both countries," van Rooyen said.
The Intertexile exhibition follows in the winning wake of the September Spin Expo in Shanghai, where AWI identified a possible 40 new projects that could be developed from the show's contacts. AWI also pushed for wool's inclusion in a possible Australia-China Free Trade Agreement during negotiations in Beijing last month.
Fresh from the talks, van Rooyen admitted the group had made "some progress" but told Ragtrader, "of course it will take some time to reach any agreement".
"Over the next five years China will command 62 per cent of global apparel wool demand. If Australia is to benefit from this expansion, restrictions to trade must be removed," van Rooyen said.
According to a report released last month by ITS Global, the Australian wool industry could expect that the inclusion of wool in an Australia-China FTA would result in an increase in wool production of up to ten per cent.
AWI established a new office in Shanghai in September, which according to AWI CEO Dr Len Stephens was to put the company "on the ground" in Shanghai, the hub of China's textile and apparel manufacturing industry.