MercoPress. South Atlantic News Agency

Uruguay’s textile industry could have to import 20 million kilos of wool

SUL, CEO Gabriel Capurro, China leading market for Uruguayan wool

Uruguay’s textile industry is short of wool and could be forced to import up to 20 million kilos, revealed Uruguayan Wool Secretariat (SUL) CEO Gabriel Capurro during the opening of an ovine industry seminar, organized by the country’s Corriedale breeders association.

“The textile industry is forced to import that volume of wool because it has a surplus capacity compared to domestic production”, explained Eduardo Pietra, president of Central Lanera, a sheep farmers’ cooperative.

“Industry must work at full capacity to lower costs and retain competitiveness” added Pietra who also pointed out to the fact that currently Uruguay exports more greasy wool than a decade ago.

Uruguay’s annual wool exports are equivalent to 65 million kilos, with China the main client.

Capurro said that the European Union has been a crucial market for industrialized wool but is now in a “risk zone” because of the Euro debt and confidence crises.

Regarding lamb and mutton, Capurro said that Brazil “is our leading market” but there are also risks given the uncertainties about how long Brazil can support its strong currency.

In a quick overview of Uruguay’s sheep industry, Capurro said that in the last decades the number of sheep in the country has dropped dramatically while prices have recently begun climbing and fast. Currently, “demand is very strong but supply limited”.

Capurro recalled China is Uruguay’s main market for wool, almost half the annual clip, and in the last two years “prices have soared”.

Pietra from Central Lanera said it was important to ensure a Uruguayan wool quality mark since production will remain low compared to only a few decades ago, but with high prices, although “we must be aware of the evolution of currency values”.