Australian wool is 'back in vogue' as the sector experiences a resurgence

The Australian wool industry is enjoying a notable comeback, with prices nearing $20 per kilogram, marking a significant recovery after years of hardship. The Eastern Market Indicator (EMI) recently hit $19.89 per kg, a substantial increase from the previous year and the highest level since October 2018.

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When I first started a couple of years ago, the industry was really negative. It was drought, prices were really low, sales were sluggish and it was really hard. But in the last 12 months some new talent has come through and there are so many young people enthusiastic about wool, which excites me.

This resurgence contrasts sharply with the industry's struggles since the collapse of the wool reserve price in 1991, when prices plummeted to $4.30 per kg. Decades of low prices and setbacks led to many established businesses and producers leaving the sector, reducing Australia's wool-producing flock to levels not seen since before World War I.

However, a new generation is now revitalizing the industry. Young farmers and industry professionals are bringing fresh enthusiasm and innovative ideas, seeing a promising future in the sustainable fiber market. Isabella Thompson, a wool buyer, noted the shift from a predominantly negative outlook to one filled with excitement due to new talent entering the field.

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When you compare the wool that comes off the sheep, and the animal's [meat], you might say that agriculture can just about ride [on] the sheep's back again. As a young person in the industry, we've come through a period of doom and gloom, everyone was asking why you'd chosen to go down this path, it's not worthwhile. But when we can see how strong prices can become, and we can see what it can do for farmers, this is what it's about.

Industry figures like Tom Simmons and Nathan Wessling express confidence in the current price stabilization, viewing it as a sustainable level for the entire supply chain. They highlight the growing community interest in natural fibers, especially as concerns about microplastics rise. The decline in suit-wearing is also noted as an opportunity for garment producers to capitalize on the appeal of natural fibers, which are resonating well with consumers.

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I remember in 2018 and we hit $20 per kilo for wool and it was really exciting, but we need to make sure we're hand in glove further down the supply chain. We're in a really good spot with the market; supply is low but demand is high, so it's a really good time to be in wool.