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ABARE, Elders differ over wool outlook
12 Mar 2004
ABARE and Elders have diverse views about the future of the wool industry: ABARE said recently that real prices are on a long-term steady decline, while Elders believes fine wool is the world's fastest-growing luxury fibre.
Elders' GM Wool, Steven Read, said the reason for the apparent disparity between the two organisations' views may be ABARE's use of the eastern market indicator as the general market guide. Mr Read said the industry should be divided into at least three main parts: fine, medium and broad. With something like 850 different individual wool types, talking about the price, trends and market indicators really doesn't mean a great deal for many people, he said.
ABARE and Elders both agree that the world economy will strengthen in 2004 and moderate in the medium term. But Elders said such a strengthening in key markets, such as China, the US, Europe and South Korea, will only benefit the wool industry - particularly the finer end. ABARE said, however, the stronger world economy and subsequent apparel demand will be offset by cheaper synthetics.
Stock & Land, 11/3/04.
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