Department Of Agriculture, Fisheries And Forestry


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Department Of Agriculture, Fisheries And Forestry

  1. 1. Australia Country Paper Des Pearson, Manager Wool and Dairy Department of Agriculture, Fisheries and Forestry - Australia
  2. 2. General Business Environment <ul><li>Australia’s textiles and clothing industry : </li></ul><ul><ul><ul><li>large and diverse – along value chain </li></ul></ul></ul><ul><ul><ul><li>Ranges from raw fibres to semi- and fully processed fabrics and materials. </li></ul></ul></ul><ul><ul><ul><li>Clothing manufacturing has contracted. </li></ul></ul></ul><ul><li>Export oriented activities : </li></ul><ul><ul><ul><li>Continually incorporating innovative products and processes. </li></ul></ul></ul>
  3. 3. General Business Environment <ul><li>Main message – despite contraction of clothing manufacture, textile and clothing exports have risen. </li></ul><ul><li>Australia’s future lies in high quality specialised textiles that reflect the country’s unique climate and lifestyle – for example, sport and casual wear. </li></ul>
  4. 4. Natural Fibres Sector <ul><li>An abundance of fertile productive land: </li></ul><ul><ul><ul><li>Australia is the world’s largest producer and exporter of fine wool and a large exporter of cotton. </li></ul></ul></ul><ul><li>Land,Wool and Water Project (AWI and Land Water, Australia): </li></ul><ul><ul><ul><li>Program will provide wool producers with access to information on managing salinity, river health and native vegetation so that Australia has sustainable production well into the future. </li></ul></ul></ul>
  5. 5. Wool <ul><li>Despite sluggish demand, prices are currently high because of tight supply and the end of the stockpile. </li></ul><ul><li>Demand: </li></ul><ul><ul><li>World economic growth is expected to be subdued this year; the consensus is that there will be a recovery in 2003 and this will support demand for wool apparel. </li></ul></ul>
  6. 6. Wool <ul><li>Supply: </li></ul><ul><ul><li>Because of the drought, sheep numbers and production have declined – with the wool reduction concentrated in the mid-micron ranges (21-24 mn). </li></ul></ul><ul><li>Wool production is expected to recover once the drought recedes and producers return to wool – but only as prices remain high. </li></ul>
  7. 7. Cotton Sector <ul><li>Production: </li></ul><ul><ul><ul><li>Drought to reduce plantings and yields. </li></ul></ul></ul><ul><ul><ul><li>ABARE forecasts a marked reduction (37%) in the area used for cotton – due to reduced availability of irrigation water. </li></ul></ul></ul><ul><li>Best Management Practices : </li></ul><ul><ul><ul><li>Australian cotton industry is committed to combining science and farming practices for the benefit of the environment and community. </li></ul></ul></ul><ul><li>Research and Development: </li></ul><ul><ul><ul><li>Main body is the CRDC – funded by an industry levy and matching Government funds. Its focus is on resource and environmental management, lifting competitiveness and on assisting the cotton community. </li></ul></ul></ul>
  8. 8. Government Policy <ul><li>Removal of Textile and Clothing Quotas (in 1993) and further reduction in import tariffs is likely after 2005 in order to meet our APEC and WTO commitments. </li></ul><ul><li>Structural adjustment measures for the textile and clothing industries to enable it to adjust to the changing environment and to compete without further assistance. </li></ul>
  9. 9. Conclusion <ul><li>The three keys to the future success of the natural fibres, textiles and clothing industries will be: </li></ul><ul><ul><li>A strong focus on R&D – leading to sustainable wool and cotton production. </li></ul></ul><ul><ul><li>Continuous innovation – all along the value chain. </li></ul></ul><ul><ul><li>Securing enhanced market access – either bilaterally and/or through the WTO. </li></ul></ul>