Wool exporting firm to surpass past profit records

09 Dec '10

2 min read

Christchurch-based New Zealand Wool Service International (WSI), which is the country's leading wool exporting firm, is trying its level best to outshine its last year's profit after tax of $2.2 million, even before the completion of the first half of the 2010-11 season. The company, during its annual general meeting held recently, presented a picture of its future prospects with regard to its strong wool trade.

Michael Dwyer, Managing Director of the firm, said that the company's optimistic attitude is attributed to the enhancement of its two wool scourers, low stockpiling and improved trading in the market and also the efforts that it had employed for marketing its products. Dwyer said that the company has benefited from the scarce wool supply which almost pushed the commodity prices to double. There has been a considerable rise in the demand for strong wool from carpet and textile producing firms.

He, further, said that their consumers are expecting that the firm should source them with increasing quantity of wool. There has been a rise in the prices of strong wool from $2.64 per kg, 18 months back, to $4.74 per kg now and the positive trend in the prices is likely to continue.

Further, the growing confidence in foreign markets has sustained throughout the season this year, and the European as well as Australian markets, too, are recovering. Asia, being a bastion, has managed to sustain its wool consumption at pre-recession levels.

The firm revealed that, being the country's biggest exporter of wool, it has raised its contribution to country's total wool exports to 45 percent. Also that, the new management at the North Island-based Whakatu scouring plant, too, has played a crucial role in generating profits and is close to match the output of the Christchurch-based Kaputone plant.

Fibre2fashion News Desk - India