The Minister led WA Wool Strategy Group delegation to China

3/4/98

The Western Australian Wool Strategy Group delegation to China consisted of WA wool growers and trade representatives who participated in an intensive program of meetings with mill directors and Government organizations in the Shanghai and Beijing regions.

Primary Industry Minister, Monty House led the delegation.

The Wool Strategy Group was initiated in 1993 by Mr House and charged with the responsibility of developing initiatives for improving the position of the WA wool industry in the world market. The group also provides industry direction to the Wool Program of Agriculture WA.

During the visit to China, Mr House and the WA delegation met with industry representatives of the Chinese wool textile industry.

"The Chinese textile industry has an opportunity to increase market focus of the finished garment which could absorb the excess capacity of the processing industry," he said.

"Performance indicators are now being applied to State-owned mills which reflect the rapid change in the commercial environment in China.

"The world's largest spinner, Sud Wolle, and one of the world's largest topmakers, Chargeurs, have invested in the most efficient plants in China. This demonstrates their confidence in future growth in China, Japan, Korea and Taiwan.

"It is an important aspect of the world market that the growing economies of Europe and America are not able to meet the current level of demand for wool in Korea and China."

Mr House said that China had commenced a major program to reform its wool textile industry and this was expected to reduce its production capacity to a more competitive level over the next 12 months.

"Changes to production capacity and quality in China will result in a healthier market for Western Australian wool," he said.

Mr House said major growth in the wool textile industries of China and Korea in recent years had resulted in excess capacity of combing, spinning and weaving plants. However, this was being rationalised by the wool industry.

There was also a current stockpile of tops and finished garments.

MEDIA CONTACT: Julie Cole (08) 9481 2044

The delegation included:

Phil Gardiner, chairman, Wool Strategy Group

John Kirkpatrick, member, Wool Strategy Group (Director, Standard Wool)

Fred House, member, Wool Strategy Group

Elizabeth Foley, executive officer, Wool Strategy Group

Richard Coole, wool grower - Kojonup

Marg Agnew, wool grower - Esperence

Ted Officer, wool grower - Mullewa

Judy Snell, wool grower - Moora

Mark Wunnenberg, wool grower - Darkan

Trevor DeLandgrafft, wool grower - Ravensthorpe

Ed Dugan, Trade/Market Specialist, Agriculture WA.