The insufficient rainfall in Eastern Australia and the rising food prices have caused to reduce the sheep population. Therefore,the wool production will see a slight but alarming decline.
The situation could have become worse, had the production of wool not surged moderately in New South Wales and Queensland.
The southern region, the state of Tasmania, Victoria and South Australia have entered the new wool season with a below normal autumn rainfall. This has led to an increased sheep slaughtering and exports.
The heightening global food prices have compelled the farmers in Western Australia to go for harvesting extra winter crop.That's why, they have abandoned sheep grazing temporarily.
The production forecast in the fresh season is 385 mkg greasy as compared to 400 mkg greasy in 2007/2008 season. After a detailed survey, a statewise wool production forecast has been issued.
The following record issued by Australian Wool Innovation Limited will clarify the “falling trend” in the wool production further.
But as a matter of content, the global woolmarket will notice a marginal growth worldwide, according to IMF latest updates. Though it predicts a global slowdown in the world economy, it sees no pitfalls in the wool market and its consumption in the global apparel industry.
The balance will be provided by India and China-the two major exporters of wool apparel to the west. Also they are the biggest buyers of Australian greasy wool.