Profiles on leading Australian wool exporters

Remaining flexible in the new normal

‘The start of 2020 saw a dramatic drop in demand for greasy wool by most major wool buying countries, including China. At the end of the Q2 only a small number of Chinese companies were buying Australian wool. The latter months of 2020 has seen some European, Indian, and Chinese buyers return to the auction room floors’, says Evan Croake of Techwool Trading. ‘But this year we have actually bought more wool than in any other previous year’.

Rod Franklyn Managing Director

Evan Croake Export Trading Manager How the Covid-19 pandemic will change the landscape for Australian wool buying companies, only time will tell’, says Evan Croake. ‘Companies with a solid reputation and strong financial positions will weather this storm better than others. ‘Like other businesses, we are of course effected by the disruption and uncertainty but we are here for the long term and our experience and customer base will see us through’, he says. ‘At Techwool we are taking a long term view. We are in the process of becoming RWS registered and our Australian Trusted Trader (TT) status is a further benefit to our customers. TT reduces red tape at borders and speeds up the flow of our orders out of Australia.

‘Traceability also matters’, says Evan Croake. ‘Our strong direct buying ability ensures that we can deliver fully traceable wool whilst ticking the boxes for non-mulesed, ethically produced premium wool’. Techwool exports all Australian wool types from 14 - 38 microns. It buys direct from farms and at all auction centres in Australia, purchasing a significant percentage of the Australian wool clip each week. ‘We are flexible and move with fluctuations in the market’.

Techwool can offer all Australian wool types and blends with a minimum of fuss. Even in tough conditions its trading team shipped in excess of 250,000 bales to various countries throughout the year.

‘Every lot we source, whether direct from farm or at auction is physically inspected by hand, graded and valued according to our clients’ orders.

At the end of the day, we take pride in what we deliver and make it our business to match this to manufacturer requirement,’ he said. ‘We believe that as every client is different we must cater to these differences every time’.

Australian carbonised wool for better results

David Ritchie (left) and Myungjin (Jim) Kim, Managing Director

Wool is the most versatile of natural fibers and it is also high on the list of fibres with the best environmental credentials, with properties unmatched by manmade fibres. Wool is adaptable to use in luxury fashion, high performance outerwear, high-end automobile interiors and interior textiles, and more. And this will not change in a changing COVID world. Wool will continue to be a fibre of choice. ‘Yarn and fabric manufacturers require environmental credentials and certifications for the wool they use’, says David Ritchie MD Victoria Wool Processors (VWP). ‘We offer a varied range of carbonised types to suit the requirements of spinners and weavers; from lambs to full fleece merino crossbreds and downs wool, we can supply wool to suit any requirement. Although most Australian wool is exported in greasy form, buying 100% Australian carbonised wool can only be achieved by buying direct from an Australian early stage processor.

‘The wool we supply is not blended with wool from any other country. It is 100% Australian wool. We can also provide nonmulesing certificates when required.’

VWP is based in Victoria and is one of only a few companies in Australia that offer carbonised wool. It is a one-stop-shop service with wool buyers in all Australian wool growing regions. ‘We can work directly with spinners to source greasy wool to their specification, carbonise it, and deliver it anywhere in the world’. The recent drought in Australia has affected wool production and wool quality. ‘It has affected the yield, fibre length, and tencel strength of wool. Many early stage wool processors that are not experienced enough, or have little knowledge of Australian wool, may struggle to process wool to its best advantage. So, it makes better commercial sense to carbonise wool in Australia, before it is shipped off shore’, he says. ‘The dust content in the wool from drought affected regions is considerable’, continues David Ritchie. ‘Processing wool in Australia will ensure that wool will be delivered to you clean and ready to use, and it will be 100% Australian wool. You will also receive it faster. As processing costs in Asia continue to climb, and with the lower value of the Australian dollar it does make more financial sense to process wool here in Australia’.

‘Our carbonised wool is competitively priced. Eliminating extra transportation costs and extra processing and environmental compliance costs associated with greasy wool means that importing our carbonised wool has distinct quality and cost advantages,’ concludes David Ritchie.

Australian company reaches main buyer status in just three years

Stuart Greenshields (left) and Josh Lamb

‘COVID-19 has forced many manufacturers to re-examine their supply chains as they move to be more targeted and competitive as we re-immerge into a new normal’, says Stuart Greenshields of Endeavour Wool Exports (EWE) from its Sydney office. ‘From our perspective, at Endeavour, we stand by our customers and will continue to support them just as they have supported us during these challenging times’. Most mills around the world are resuming their pre-COVID-19 operations, but business conditions remain challenging. Wool prices will continue to be volatile from auction to auction, depending on demand and the quality of wool offered. Understanding these sometimes volatile trading conditions and being able to guide our customers through the ups and downs in the market is a very important part of our day-to-day business’.

EWE was established three years ago by Josh Lamb, Stuart Greenshields, and Warrick Eddington and in this short time the company has become the second largest buyer and exporter of Australian wool. EWE bought 128,000 bales of wool last season, representing 9% of Australian wool. ‘We provide flexibility to our customers and can supply Merino fleece for suiting fabric, semi-worsted wool for active and knitwear and carbonised and scoured wool to the carding market’, says Josh Lamb. ‘Our relationships with wool processors work well because we focus on the individual, bespoke approach. We understand the processing needs of our customers worldwide, for worsted and woven manufacturers, and provide uniform deliveries to our customers, for consistent processing every time. We supply any type of Australian wool from 14.5 - 36 micron and are always keen to share information with our customers regarding the latest market conditions and wool types available throughout the season’, he says.

Major export markets for EWE are China, Europe, and Japan. Issues around traceability, non-mulesing, and environmental credentials will continue to be important to processors in Europe and the USA. ‘Our buyers throughout Australia are well placed to source the most appropriate wool,’ he says. EWE employs nine people and buys wool at Sydney, Fremantle and Melbourne.

EWE offers forward selling options to help clients reduce risks in price fluctuations and supply irregularities. ‘It is our goal to provide our customers the best quality wool for the best price, with personal service, and timely delivery. We welcome calls from companies that are interested in tapping into our buying framework in Australia’, Stuart Greenshields says.