Fierce Competition Remains in World Fibers

CANBERRA - Mar 6/02 - STAT -- World markets for fibers will continue to experience fierce competition, but opportunities remain for wool producers.

Speaking at this year's outlook conference here, ABARE senior research officer, Dale Ashton said competition between the fibers will make it hard for wool prices to continue rising. He said that the current shortfall of wool had contributed to significant price volatility and that 'dealing with that volatility is just as important as any other aspect of farm management.'

Manager of The Woolmark Company's business intelligence group, Chris Wilcox, told delegates that despite world demand being poor and uncertain, there was in 2003 "hope of an economic recovery to pull demand through." Most of the demand growth, he suggested, would be in the finer wools for which synthetic fibers are not as readily substituted.

In contrast to the current prices for wool, CEO Queensland Cotton, Richard Haire, told delegates that cotton prices are still close to record lows and proving a challenge for the Australian industry.

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