Prolonged drought can disrupt New Zealand wool supply

26 Mar '13

2 min read

New Zealand is facing its worst drought in decades and economic confidence is plummeting to a new low in drought-stricken areas, including the North Island and the South Island.

If the drought situation continues, it would adversely affect wool supply, New Zealand Wool Services International general manager Mr. John Dawson, has said, according to Radio New Zealand.

Mr. Dawson said prolonged drought can also affect the colour and the quality of wool clip, which would generally become finer and weaker.

As a result of prevailing drought condition, wool growers might become reluctant to shear, fearing an increase in appetite of animals once they are sheared. The increase in appetite could be a problem in view of feed shortages due to drought, Mr. Dawson said.

Explaining further, he says, a severe drought might also lead to killing of capital stock, which would immediately result in more wool, but at the same time a decline in wool volumes in the following seasons.

New Zealand’s wool price indicator is currently at the same level as it was at the end of last season in June 2012.

Mr. Dawson said if the wool supply decreases owing to drought, then it would lead to an increase in prices by the end of the current season in June 2013.

Fibre2fashion News Desk - India