ULTRAFINE woolgrowers are welcoming a new deal expected to boost demand.
It follows the signing of a memorandum of understanding (MOU) between the Australian Superfine Wool Growers Association (ASWGA) and Chinese business consortium Shandong Ruyi Group.
Based in Shandong Province, China – the birthplace of Confucius – Shandong Ruyi has moulded its business principals around Confucius philosophy and so “harmony” is at the core of its branding.
This focus has been integral to the basis of the MOU with ASWGA which is based around a holistic approach to doing business, according to ASWGA president Helen Cathles.
Having recently returned from Shanghai, where she represented ASWGA, Ms Cathles said the Chinese group wants 14.5-micron wool (and finer) from Australian growers who can demonstrate a holistic approach to their production system.
“It will be used for producing beautiful women’s suits, wonderful fabrics – which for me is the really exciting thing because ultrafine wool is being put
back into women’s clothing,” she said.
Ms Cathles said the expected increase in consumption would triple demand for ultrafine wool.
This was most welcome as it could be supplied – at least for the first 12 months – from within the existing 120 tonnes already produced annually by Australian growers.
“There is presently the supply available to achieve this because people have wool in store,” Ms Cathles said.
However, the MOU was also about developing a relationship for a sustainable future, both pricewise for the growers and supply-wise for Shandong Ruyi.
“They want their business to grow and consumers are learning more each year – the more the consumer learns, the higher value they are moving into,” she said.
The ultrafine fabrics will fit demand from the “new elite” in Chinese society, which is predominantly young, innovative, well-educated people.
Ms Cathles said the reason ASWGA and Shandong Ruyi had aligned was for quality and sustainability.
“You need good genetics to do that – this isn’t just about drought fine, its about genetically fine wool,” she said.
In demonstrating its committment to ultrafine wools, Shandong Ruyi showed ASWGA delegates its newly developed Ruyi-spun yarn.
“I have seen and felt this in a 12-micron fabric – it is truly magnificent to touch and to view, with outstanding drape,” Ms Cathles said.
Ms Cathles said this was a boon for ultrafine growers who had been hit hard by Europe’s financial woes.
Finally, a renewed interest in quality ultrafine wool and an effective Australian Wool Innovation Gold Woolmark campaign have come together to rejuvenate demand for the quality fibre, she said.
“These two factors are really having a huge impact.”
The next step for ASWGA was to assist Shandong Ruyi to locate quality wool – it has also said it would be prepared to establish contracts with growers, Ms Cathles said.
“They will be after quality of wool, sustainable production systems and a sustainable price long-term for the grower,” she said.
“We’ve opened the door for opportunity and we now have to put in place the structure to make it happen.”
Ms Cathles said the association already had a good idea which growers were suitable, but the chairman of each of the association’s regions would approach their grower members to identify interested parties for what was essentially seen as a “future strategy” for ultrafine wool.
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