THE WOOL INDUSTRY
Australia is the world's largest wool producing country, accounting for about one quarter of total production. Wool production has been declining in Australia and the world for the past ten years, and is expected to continue to do so in the medium term. Since 1990 Australian wool production has halved, to around 509,600 tonnes in 2003-04. Almost all of Australia's wool is exported, the major markets being China, Italy, India and Taiwan.
WOOL PRODUCTION
Shorn greasy wool contains an appreciable amount of grease, dirt, vegetable matter and other material. The exact quantities of these impurities in the fleece vary with climatic and pastoral conditions, seasonal fluctuations and the breed and condition of the sheep. It is, however, the clean wool fibre that is ultimately consumed by the textile industry, and the term 'clean yield' is used to express the net wool fibre content present in greasy wool.
The gross value of wool produced in 2003-04 decreased to $2,397m (table 14.45), less than half the value recorded in 1988-89 ($5.9b), the peak year in the wool boom of the 1980s.
14.45 WOOL, Production and value
|
 | Shorn wool | Other wool(a) | Total | Gross value |
| ’000 tonnes | ’000 tonnes | ’000 tonnes | $m |
|
| 1997-98 | 640.7 | 48.9 | 689.6 | 2,753.9 |
| 1998-99 | 638.8 | 48.8 | 687.6 | 2,141.0 |
| 1999-2000 | 642.3 | 52.5 | 694.8 | 2,149.2 |
| 2000-01 | 589.9 | 55.3 | 645.1 | 2,541.2 |
| 2001-02 | 536.9 | 50.4 | 587.3 | 2,713.2 |
| 2002-03 | 503.0 | 48.1 | 551.1 | 3,317.8 |
| 2003-04 | 467.6 | 42.0 | 509.6 | 2,396.5 |
|
(a) Comprises dead and fellmongered wool, and wool exported on skins.
Source: Agricultural Commodities, Australia (7121.0); Value of Agricultural Commodities Produced, Australia (7503.0). |
WOOL RECEIVALS
The total amounts of taxable wool received by brokers and purchased by dealers in recent years are shown in table 14.46. They exclude wool received by brokers on which tax had already been paid by other dealers (private buyers) or brokers.
14.46 TAXABLE WOOL RECEIVALS
|
| Receivals | |
|
| |
| Brokers | Dealers | Total | Brokers as proportion
of total receivals |
| ’000 tonnes | ’000 tonnes | ’000 tonnes | % |
|
| 1997-98 | 524.0 | 116.7 | 640.7 | 81.8 |
| 1998-99 | 526.9 | 111.8 | 638.8 | 82.5 |
| 1999-2000 | 517.5 | 124.8 | 642.3 | 80.6 |
| 2000-01 | 487.2 | 102.6 | 589.8 | 82.6 |
| 2001-02 | 436.8 | 99.7 | 536.5 | 81.4 |
| 2002-03 | 390.6 | 112.5 | 503.0 | 77.7 |
| 2003-04 | 384.2 | 83.3 | 467.6 | 82.2 |
| 2004-05 | 383.7 | 91.5 | 475.2 | 80.7 |
|
| Source: Livestock Products, Australia (7215.0). |
The article 'The wool industry - looking back and forward' at the conclusion of the Agriculture chapter of the Year Book Australia 2003 provides more information on the industry.
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