Over the past decade, the Italian textile industry has taken over ultra-fine wool produced in regions such as the Midlands in Tasmania and southwestern Victoria, destined for luxury factories in the north of the country.
the main points:
- Ultra-fine Australian wool is highly sought after by Italian textile manufacturers
- Italy was one of the countries most affected by the pandemic in 2020, as it closed its wool mills and reduced demand for luxury goods.
- The demand for ultrafine wool dropped dramatically and has slowly recovered since then
But as the epidemic spread across Europe, spinners and cartoonists were silent.
Andrew Blanche, chief executive of New England Wool, which buys wool in Australia for two Italian factories – Reda and Vitale Barberis Canonico – said the pandemic has not only closed factories, but has also reduced demand for luxury wool products. .
“It was a very difficult moment to ensure that, in the last 18 months, Europe and especially Italy followed China and became the epicenter [of the pandemic]Mr. Blanche said.
“With retail stores closed and people stopping to travel, all the things that were traditionally used to dress wool businessmen and their businesses are closed.
Sarina Look
)Since 2015, Reda has bought much of its ultrafine wool from a group of farmers known as the Reda Futures Group.
That contract ended last year, and as COVID put pressure on the manufacturer, it opted for a different approach in 2021.
“This group is still alive and well, but [Reda] They felt they needed more flexibility this year to buy when they needed it, and what they needed, to get back on track, ”Blanche said.
Fortunately, this is starting to follow. Europe is rapidly starting to get out of the COVID situation and more orders are coming.
“They will be back in the situation next season.”
ABC Rural: Luke Radford
)One of Rida’s farmers is Northern Tasmanian farmer Luke Rapley, who is optimistic that the industry will recover from stagnation.
“Over the past five years, we’ve been selling a portion of our clip with satisfaction,” Rapley said.
“I think they will come back and support us. There isn’t much wool around us anymore, being a really well set up segment, so I think they will come back and support us ”.
What do the other mills say?
It is a similar situation to that of the Australian branch of the luxury fiber producer, Schneider Group.
Chief Executive Tim Moroydal said despite the difficulties he continued to offer a contract for 2021.
“If you look at the year since January, it has been a very difficult time, but there is no doubt that we are seeing a light at the end of the tunnel,” said Moroydal.
“Our contract is still valid. Keep rotating with each market. Keep moving with long-term averages and add quality premiums ”.
ABC Rural: Luke Radford
)Phoebe Crowell, who represents Vitaly Barberis Canonico (VBC) in Australia, said the company has offered a contract for the second half of 2021.
“VBC lost over 50% of its fabric sales and invoice values in 2020,” he said.
“Last year we set a limit on the number of bales members can commit under the contract, but this year there are no restrictions.
“Farmers can submit as many bales as they deem fit the criteria of a VBC contract and VBC will take all bales that fit the specific categories they are looking for.”
There is no upper limit on the number of bales a VBC will require.
ABC Rural: Luke Radford
)Processor “intensification” activity
So, is the market supporting this new optimism?
Robert Hermann, managing director of Micardo’s market analysis, said the signs already indicate a return to normal.
“The market definitely suffered, the numbers weren’t stacking up and they had a lot of challenges in the European economies,” said Hermann.
“One of the things we know is that it’s hard to predict anything nowadays, but the wizards have told us their business is on the rise.
“European and Italian buyers tell us that demand is something they can see increasing and they expect to see it continue to do so.”
