Analysts are predicting that the increase of wool price is due to its sustainability. When compared to 5 years ago, the current prices are on the rise due to a large demand of the textile in China.
According to the director of the New Zealand Council of Wool Manufacturing, Patrice Moon “Demand is strong, working with the amount of supply everything looks healthy.” The gain in price is in relation to the quality with superfine high-end product, whereas the lower end, coarse wools, haven’t seen as much of a significant increase.
Woolgrower Claims Now is Better than Wool Boom of ’51
According to woolgrower Patrick Biggs, he said “Within the past 3 years, we have seen our best numbers. The industry is stronger than it’s ever been.” Recalling he past he goes on to continue, “Back in 1951 we were all blowing money, buying new cars, but looking back it didn’t last very long, we rode the wave for half a year.”
Mr. Biggs is a wool processor who owns over 5000 ewes, who distributes solely to factories located in China.
Increase in Chinese Fashion Industry Investment
Fresh from a business trip back from Shanghai, Mr. Biggs strongly believes in feeding the Chinese need for wool.
Being the largest consumer of wool, the Chinese market buys roughly 3/4’s of the world supply, picking up the slack from the lack of Italian buyers, who’s share of the market dropped over 20%. India is also seeing an increase in wool purchase, with them buying 10% of the supply.