Woolgrowers buoyed by rising prices - farmers weekly
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_BY BOYD CHAMPNESS_ Australias woolgrowers are likely to increase production for the first time in a decade as they rush to meet increased prices and rising demand. Prices have increased by
25% since the start of the year and last week fell slightly with the Eastern Market Indicator finishing at $A7.26/kg – still a long way shy from the record high of $A12.60/kg reached during
1989. Even though production has been on a downward spiral since the early 1990s – reflecting the slump in prices – Australia remains the worlds largest wool producer and exporter.
Nevertheless, the nations sheep flock, expected to be 112 million head in 2000-01, is now at 45-year low. Strong demand from Australias biggest customer, China, has helped lift prices with
the communist state buying $A643 million worth of Australian wool last year. The Chinese Government has also issued new wool quotas, giving mills a lot more autonomy when it comes to making
purchases.