Potential new markets for Aussie wool

AWI has worked for several years to increase the number of markets that process Australian wool and manufacture it into products. This strategy has been driven by the desire to diversify Australian wool’s supply chain and to avoid the rising costs in developed markets.

Whilst these factors are still important, global supply chain dynamics have shifted in recent years due to the COVID pandemic, the global textile industry’s push towards sustainability, and international trade tensions.

AWI Regional Development Manager, Trudie Friedrich, says the Australian wool industry needs to ensure that it adapts to these changes to remain relevant and accessible.

“The effects of the pandemic meant delays in the global supply of goods, meaning onshoring and nearshoring have become important goals for many retailers and brands as they move to simplify their supply chains and lessen lead times as well as risks,” Trudie said.

“In addition, the textile industry’s focus on sustainability and traceability has meant that brands are increasingly examining the eco-credentials of their supply chains and ways to lessen their impact on the environment.

“As part of its updated Emerging Markets Strategy, AWI has identified several countries whose textile industries benefit from these changing dynamics and have the potential to increase their processing or manufacturing of wool.”

In the past two years, AWI has worked and will continue to work extensively in Bangladesh and Cambodia to develop their wool processing and manufacturing capabilities. However, the company has recently identified further key emerging markets for Australian wool, in particular Portugal, Mexico, Peru and parts of Africa.

“Our analysis of potential markets has enabled us to gauge these particular markets as those best suited to introduce wool or support more wool in their supply chains,” Trudie said.

“In each market, we have researched the types of manufacturers in the market, which companies are already working with wool, what wool (yarn, fabrics, garments) is being produced there, who wants to work with wool and how AWI could help them to do so.

“We have also analysed key data for each market, including their economic status, textile sector size and growth, current political status and information such as free trade agreements.

“For each of these newly identified markets, we will begin or continue to develop collaborations with companies, textile associations and government bodies to boost their awareness of Australian wool, generate leads for technical and/or knowledge transfer activities, and connect new suppliers to potential customers through our international network.”

AWI’s Emerging Markets Strategy aims to replicate the success that the company has had in helping develop new manufacturing supply chains for wool products in Vietnam. Since identifying Vietnam in 2012 as a potential manufacturing hub for wool textiles, the country has grown a robust wool supply chain including spinning, weaving, knitting and whole garment manufacturing.

This article appeared in the December 2023 edition of AWI’s Beyond the Bale magazine. Reproduction of the article is encouraged.