MercoPress. South Atlantic News Agency

Uruguay's wool industry exports total 282 m USD in 2008

Merino sheep

Uruguay's wool industry exports between January 31st 2008 and February 2009 totalled 282 million US dollars which is 10.4% less that the same period a year ago, because of a 13.9% drop in wool sales and an 83.8% reduction in live sheep shipments.

According to the Uruguayan Wool Secretariat, SUL, Uruguay exported the equivalent of 49 million kilos of greasy wool which was down 27.4% with most sales (68%) as tops, ready for the overseas textile industry. Total wool sales (greasy, tops, first wash) added to 159.7 million US dollars, 19.3% down from the same period a year ago. China remains as Uruguay's main partner for wool, having purchased 43% of the production, which anyhow was 18.5% below the previous year. China was followed by Germany, Italy, Japan, Iran, Bulgaria, UK, Turkey and Brazil. However there was a slight increase, 1.6% in wool textiles and wool garments, 24.1% overseas sales. This means that wool and wool products, plus skins reached 212.8 million US dollars. But the wool industry also includes sales of lamb and mutton, skins and live sheep, mostly to the Middle East. Exports of ovine meat reached 64 million US dollars which represents a 28.5% increase. This increase was both in volume and price. Uruguay's main client is the European Union with its quota of tariff preference, followed by Brazil which has a particular interest in "heavy lambs" But there was another item which virtually collapsed and that is the sale of live sheep, mainly to the Middle East. They plunged 83.8% to 2.5 million US dollars. The SUL conclusion is that the wool industry in Uruguay overall continues to shrink since the latest census and its primary results, still to be confirmed, show that the Uruguayan flock has again diminished.