Developing Market For Wool In Asia

Press, Volume CVI, Issue 31144, 22 August 1966, Page 9

Developing Market For Wool In Asia

(From WILLIAM RILEY in London> Mr Paul Williams is something of a modern day Marco Polo. His travels take him from Afghanistan to Japan: from Malaysia deep into the interior of China. He returns to London not with silks and spices but with an equally valuable trade commodity in today’s world of commerce—information about the markets for wool, their potential, and contacts with important industry leaders and policy-forming officials in Government.

Today, as throughout the centuries, trade in wool knows no boundaries. As the International Wool Secretariats director of market development for the Asian region, Mr Williams, is able to cross "forbidden" frontiers and journey in regions where wool still comes to the market by camel caravan along ageold trails. During the last year this Australian wool man has made 17 visits to eleven countries among them China, North Korea, Japan, Hong Kong, Malaysia and Pakistan. Keeping In Touch And in brief sorties from his London desk at I.W.S. headquarters he has Hown to Vienna, Brussels, Dusseldorf and Paris as opportunities have occurred for contacts with visiting wool buying agents, wool textile industry representatives and Government trade officials from his territory. It is this sort of schedule which has kept him “in the field” for about nine months of every year for the last three years. This a long-term task of “wool diplomacy,” and the long-term results are enormously important for the woolgrowers of Australia. New Zealand and South Africa. Vital Stake

As producers of threequarters of the world's exported wool, the three I.W.S. partner countries have a vital stake in the future of a region of nearly 1000 million potential wool customers. Mr Williams served for four years with a trading company in Hong Kong, then for seven years as Australian trade commissioner in Japan—he speaks the language fluently. He spent a further three years there with the Japanese branch of the I.W.S. before his present headquarters appointment in 1965. This has given him the insight of long first-hand experience in assessing the vast possibilities and the formidable problems in enlarging wool’s markets in Asia. “It’s primarily a case of our being there: of being known, and of building up an understanding of our objectives and a trust in our motives,” he says. “Whenever we can. we're encouraging the improvement and expansion of their wool producing and wool textile

industries, so that wool can maintain its place in growing home markets and emerging export industries. As living standards rise, so will the home market demands for wool —and for imports of raw wool and finished woollen products.” Great Imponderable Markets with the greatest future for W'ool are rated by Mr Williams as China, North Korea. Hong Kong and Pakistan, with India, Afghanistan. Nepal and Malaysia further down the list. China is the great imponderable. But who would have foretold the extent of Japan's remarkable advance as a woolusing nation in only 15 years. I In this time Japan's imports of raw wool have increased seven-fold—B3 per cent of which are from Australia —and her exports of yarn and fabrics are about 20 times greater. With China a much longerrange view must be taken, and historical and political factors must inevitably condition the outlook. Nevertheless, in China today significant pointers to a rapidly increasing demand for wool are: Breeding flocks are being imported from Australia, New Zealand and elsewhere to improve the fibre quality of some of their 59 million sheep. While China is producing some of the best coarse carpet wools in the world, they need more finer wools for apparal manufacture. In the last four years seven new mills have been built, increasing the capacity of the wool textile industry by 35 million lb a year—nearly half Australia’s total wool consumption. More mills mean a certain need for more raw wool. China's textile exports to markets throughout the world are increasing in volume and improving greatly in quality. Prices are well in line with

those in the markets they are selling in, so there is no question of dumping. Living standards are rising and, contrary to popular belief, a great many people have money to spend. Probably because such expensive Western symbols of affluence as private housipg. and cars, are not a dominating feature of life there, clothing claims a higher priority—and wool is a traditional and desirable fabric for clothing and other uses. Trade Diplomacy Mr Williams feels that all this is leading to a situation where China could need increasing wool imports for blending with her own coarser wools. But it is at this point that speculation about the future comes up against the imponderables —among them the policies of China's state-buying organisation. It is here also that his job moves into the realms of trade diplomacy and confidential contacts. In this, an important part of his mission is to firmly establish the nonpolitical international standing of the I.W.S. and its ability to give advice and assistance without tags. Positive developments for wool are being assisted by the I.W'.S. in other countries and others are being considered. In Hong Kong, where wool imports are now worth £2O million a year and exports are worth £36 million, the I.W.S. is sponsoring a wool school in partnership with the industry and the Government. This will help overcome a serious shortage of technicians resulting from the textile industry's rapid expansion. In India, technical assistance is being given to mills to improve productivity and quality standards and so increase earning capacity. Embryo Industries Embryo wool textile industries in Pakistan, Nepal and Macao need expert advice and technical assistance to ensure their sound expansion as efficient, economically viable units. Market developments in Malaysia, North Korea, Cambodia, Burma, Afghanistan and elsewhere are being studied. I.W.S. assistance in most of these countries is still at the tentative stage, and will be considered only if it will help to improve and expand the capacity of important elements of the wool producing and textile industries. At this stage of economic development, most of their wool industries are not sufficiently advanced to warrant active wool promotion; But through its market development work, the I.W.S. is on the spot and ready to move when the time is ripe.

Mr Williams says that fine wool fabrics are held in high esteem and are in keen demand for clothing throughout Asia. For this reason, as living standards rise, he believes these markets offer the greatest opportunities for wool in the long-term future. As he puts it—it is a question of being there.