New Zealand’s wool exports are likely to decline 8.3%

New Zealand is the world’s second largest wool exporter, second only to Australia, the drought has accelerated the decline in the number of sheep, and lower prices to retain the wool after the herdsmen, New Zealand’s wool exports are likely to drop to 59-year low.

In the June 30 end of the year, New Zealand’s wool exports are likely to decline 8.3 percent, to 125,600 tons net wool, meat and wool in New Zealand, said on the 16th. The export volume may be the lowest since 1950, the volume of exports, the country’s sheep population decreased by 11 percent, and wool prices also declined.

Most farming in New Zealand herdsmen heavier levels of sheep wool, producing the world’s carpet manufacturers use 40 percent wool. After decades of decline, the number of sheep is relatively stable, in the past two years, a drop of 6 percent, which occurred in the drought forced the herdsmen to reduce the volume of stock price weakness after the herdsmen to accelerate the development of the dairy industry.

Meat and Wool New Zealand’s forecast, this year New Zealand will be priced at an average of 12%, at least 5 consecutive decline, this is because the global downturn in the building to reduce the use of carpet, consumers in higher prices for wool apparel consumption decline.

China is New Zealand’s largest wool procurement States, in the end of June 30 end of the year, bought a New Zealand wool production 27%; the United Kingdom is the second largest country of procurement, the purchase of 13%.

Lower prices

In August, the world wool prices remain very good, suggesting a good potential demand. Subsequent credit crisis dealt a blow to consumer information, reduced procurement to provide loans for building the same time the global downturn has accelerated the decline in wool prices.

Fine-wool prices may drop 22 percent, to 7.31 New Zealand dollar / kg. Medium-level wool prices are likely to decline 4.4 percent, down 4 NZ / kg; 32 microns and above the price level may drop acuminatum 12 percent, to 2.25 New Zealand dollar / kg.

These estimates are in the New Zealand dollar exchange rate with the 58 cents based on the assumptions.

Difficult to increased demand in overseas markets, which is due to the credit crisis, New Zealand and Australia to reduce the impact of production. If the stock higher demand rising, prices are likely to drift.