Wool production to drop further
WORLD wool production, which has fallen over the past year to its lowest level in 40 years, will fall even lower over the next two years, according to a study by The Woolmark Company.
It says the combination of falling demand for wool and high world stocks will cause the slide.
The global raw stock overhang is forecast to fall by the end of 2002-2003. But production in 2004-2005 will be just 2% higher than in 1998-89.
Woolmark identifies signs of recovery in Asia and the USA, but says wool stocks remain above normal levels in western Europe.
- Financial Times 17/08/99 page 26