Sheep Industry News September 2023

RTM’s Bring Foreign Wool Buyers to United States

W ool buyers from India were in the United States in late July as part of a reverse trade mission organized by ASI. In the last 20 years, India has played an important role in the American wool export mar ket. However, exports had waned during COVID, and ASI is working to rejuvenate the country’s interest in American wool. ASI helps identify customers around the world and informs them about American wool and its selling process. Understanding the needs of international customers helps match potential suppliers. The first stop on the tour was Groenewold Fur and Wool Company in Illinois. Keese In ternational led the tour the next day in New Mexico before the group finished up in Texas with Wool Partners Inc. and Anodyne Wool looking at wool from all across the United States.

The wool buyers were escorted on the trip by ASI Wool Production Programs Manager Heather Pearce and ASI Wool Consultant Barry Savage. ASI uses funding from the U.S. Department of Agriculture’s Foreign Agricultural Service to support reverse trade missions and other projects that promote the use of American wool in processing hubs all around the world. With limited processing capacity in the United States, 55 to 65 percent of American wool is exported. Additionally, like other commodities (think beef), more markets (in cluding export markets) mean stronger demand leading to higher prices for wool. About a decade ago, India was the No. 1 export destina tion for American wool. China has been the top destination for the last several years and, while important to the indus try, it is important to diversify markets and expand market ing opportunities. India is in a unique position as the most populous country in the world with readily available labor and government incentives to export products. Competition for wool markets is steep. There is a huge inventory of wool across the globe. Additionally, land and ocean freight from the United States is very high, the value of the U.S. dollar is high (making it cheaper for wool processors to buy from other countries), and processing in the United States is costly and limited. While there are some very good American wools to offer, some domestic wools are shorter length, more variable in staple length, have more colored fibers, kemp, paint and polypropylene contamination. All of these situations create issues for processors, lowering the value of the wool and making it difficult to sell. India’s Gauttam Woolen Mills – which participated in July's RTM – has been in the family for generations, pur chasing raw wool and selling combed top. The company has the unique capacity to hand sort wools to separate kemp, colored fibers, high vegetable matter areas and other con tamination, ultimately making high-quality top. While the company is looking for longer stapled wool suitable for combing into top, it is looking for wools in all microns and can add value to wool with additional sorting. Reverse trade missions are so valuable because they al low buyers like Gauttam Woolen Mills to form trust and a relationship with American sellers. Buyers can understand the variety of wools available and sellers can understand ex actly what the buyer is looking for. This leads to long-term relationships and sales.

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