Last month, the Australian Wool Production Forecasting Committee cut its estimate for wool output for the 2010-2011 season, attributing the decline to "worsening seasonal conditions" in the state of Western Australia that ultimately reduced fleece weights. Flocks in Queensland state, which has been besieged by an onslaught of wet weather in recent months, have particularly suffered during the inclement weather.
Andre Strydom, general manager at Cape Wools SA, told Bloomberg that the wool shortage could cause supply chain disruptions worldwide: "There is a significant worry developing among users of wool that there will be a shortage of supply." Moreover, these worries, he asserted, have been exacerbated by global cotton shortages.
According to Strydom, the wool shortage could drive up prices for clothes, among other goods, in the short- and long-term as it could take "about two to four years before we see an appreciable increase in Australia's wool production."
Australia is the world's biggest producer of wool for textiles.
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