The Australian Bureau of Statistics (ABS) this week released the data on for June and the full 2016/17 financial year. The data shows that the volume of Australian wool exports increased by 4% in 2016/17 to 327 mkg greasy. This is a solid, but not spectacular rise, given the apparent strength of demand for wool from Australia in 2016/17. The strength of demand is better illustrated by the 14% jump in the value of Australian wool exports to $3.16 billion (the highest since the 2002/03 season). It seems that even though wool production lifted in 2016/17, it was insufficient to meet the increased demand. Of course, with demand lifting and supply constrained, prices rose as a result and the value of wool exports also rose. At $3.16 billion, this is the highest financial year total achieved since the early 2000s.
The major driver of the increase in exports was China, with exports lifting by 9% in volume but an amazing 21% in value terms. The total value of Australia’s wool exports to China in 2016/17 was $2.41 billion, a record level. China accounted for 77% of the value of Australia’s wool exports in 2016/17 and 79% of the volume. The volume of wool exports to Italy lifted (by 1%) while the value of exports rose by 17%. The value of exports to Egypt also lifted, by 12%, although the volume of exports was down a touch. There was as slide in Australia’s wool exports to other destinations, including elsewhere in Europe, East Asia and Malaysia.
Full details including a chart showing the total volume and value of wool epxorts from Australia for the 2016/17 season are show in the NCWSBA Weekly Newsletter for the week ending 11th August 2017. Available to members of NCWSBA.