Recently, farmers in South Australia have been happy, wool prices have been rising, all thanks to the Chinese.
According to the latest data, South Australian wool prices reach 20 Australian dollars per kilogram for the first time because of increasing Chinese demand for Australian wool, and farmers are now waking up in their dreams.
According to reports, according to last week`s European market indicators, Australia`s wool has exceeded the price of 20 Australian dollars / kg, now to meet market demand, once the wool has grown, Farmers cut the wool off and bought it directly for A $20, ignoring the usual trading process.
Ian Michael, president of Merino SA, attributed the price increase in part to the growing demand for Australian wool from the middle class in China.
"with the ongoing marketing of AWI (Australian Wool Innovation Organization), our products have really developed overseas and there is a lot of demand in the Chinese market for this smooth wool," says Michael. "since this time last year, our wool prices have risen by more than A $6 a. 7, which is astonishing. This is good news for our farmers, and we can see that every producer is expanding. "
It is understood that 80 percent of Australian wool is bought by Chinese buyers, about half of whom are sold at home, while the rest are exported as finished clothing to other countries.
Wool prices rose by more than 7 Australian dollars per kilogram over two years as a result of rising demand from China.
Joe Keynes, president and wool producer of Livestock SA, predicts that farmers will continue to market their wool vigorously until the market changes.
"if the market does change, prices can`t go up all the time, and we want only a small drop in prices so wool can still be profitable," Keynes said.
Stuart McCullough, chief executive of AWI, expects prices to last for some time as demand stabilizes and new markets open.
AWI and Woolmark have been trying to tell the middle class why wool is worth buying.
