The good performance by the wool market in Australia during the last two years has rekindled hopes of resurgence of the wool industry in Australia.
Wool producers in the country continue to witness good seasons with high prices as breeding-up sheep is a slow and gradual process.
Although the current economic crisis, especially in Europe, is of concern to the country's wool industry, producers are looking forward to fetch high prices this year.
Wool seems to back in fashion, as it is being valued more in recent years by young generation of consumers and several brands that are stocking woolen products on their shelves.
The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) expects wool production in Australia to grow by 4 percent to 446,000 tons in 2011-12, owing to the growing numbers of sheep shorn and high yield per head.
In 2010-11 season, sheep flock in Australia rose by 9 percent to 74.3 million and in the current season it is estimated to increase by 5.4 percent to 78 million. However, the average wool shorn from a sheep may remain at last season's level of 4.3 kg.
The rise in wool production in Australia is likely to bring prices downward and ABARES has forecasted the wool price on the Australian Eastern Market Indicator to decline by 2 percent in 2011-12 to average Au$ 11.10 per kg.
On the export front, demand for wool items in Chinese domestic market is likely to be high owing to rising affluence there. But the weak growth in Japan, the US and the debt crisis in Europe are likely to dampen demand in these countries.
In 2012, Australia's wool exports are projected to gross last year's value of about Au$ 3 billion.
Fibre2fashion News Desk - India
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