EXCITING things are happening with the marketing of Australian wool internationally, aimed to provide a good return for our farmers and expanding the diversity of demand for the fibre.
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Last month, as part of the Australia Wool Innovations (AWI) ‘Out of Vietnam’ project, 20 Vietnamese textile manufacturers visited Australia to see first hand how wool is grown, tested and traded.
The group comprised sweater, sock, underwear and accessory manufacturers most of whom had never seen a sheep before, let alone seeing how merinos were farmed.
The self funded tour included visits to the Australian Wool Testing Authority and wool auctions in Melbourne as well as a visit to farms including AWI chairman Wal Merriman’s Boorowa property. Here, for the first time in their lives, these Vietnamese manufacturing executives saw and felt wool on the sheep’s back.
The aims of the AWI ‘Out of Vietnam’ project that started nearly two years ago has been to source new manufacturers for Australian wool products and to reduce our reliance on China an Australian wool manufacturer. Currently China receives around 80 per cent of our wool clip.
AWI’s General Manager Product Development and Commercialisation, Jimmy Jackson said it was foolish to have all our eggs in one basket when it came to such a large industry.
“With Europe, Korea and Japan taking only a small portion of our clip we felt it important to find other potential markets for our wool,” Mr Jackson said.
“We looked at Thailand, Malaysia, Cambodia and Indonesia as well as Vietnam. Vietnam seemed a logical choice, as it already has a well-established textile industry, there is plenty of water which is needed in scouring and dying and it has a stable economic and political system.
Labour costs are also favourable and there is a strong work ethic. Our value proposition to the Vietnamese manufacturers was that we would teach them firstly how to produce high value products made from Australian wool.
Then we would introduce them to potential new customers who can pay a higher price.
None of these manufacturers had produced garments from wool before.
A couple thought they had used wool but it turned out to be acrylic yarn.”
In the initial stages of the project, AWI technicians visited the factories in Vietnam to teach them about what yarns to buy, how to dye wool and finish fabric or garments made from it.
Instead of about 18 or so factories producing Australian wool products, they ended up with 50 enthusiastic participants.
In the second stage of the program, after the participating companies had become technically confident, AWI arranged for a visit to the companies by a delegation of Japanese retail buyers to meet with our new manufacturing partners.
AWI allowed about six months for the arrangements with the Japanese retail buyers to be bedded in and in February the visit process was replicated with a group of buyers from Korea.
The 20 Vietnamese business leaders who visited Australia a fortnight ago were very positive about their new venture into wool garment and fabric manufacturing and the resultant export sales.
Saigon Wool and Trading Corporation executive officer Mde Vu Thanh Thuy said that AWI had assisted her in how to make garments from wool and how to finish them after knitting.
It then introduced her to new customers. “We are now exporting garments made from Australian wool, ‘Out of Vietnam’ to Japan,” she said.
Mr Jackson said AWI was looking to establish wool yarn manufacturers in Vietnam providing a supply chain for the garment manufacturers. Further ahead it would be looking toward establishing raw wool scouring and top making enabling greasy wool to be sold and exported direct to Vietnam from Australia.
