A long-term relationship between Chinese wool manufacturers and Argentinian wool suppliers
On 13 April 2018, a delegation of the China Wool Industrial Association met in Buenos Aires with representatives of the Federation Lanera Argentina (FLA). The purpose of the Chinese visit to Argentina was to better understand local production and review the Argentinian wool clip.
China is the largest wool processing country
The China Wool Industrial Association represents around 80 major Chinese wool processors. Combined these Chinese companies buy by far the majority of the world’s wool clip.
For a wool producing country like Argentina, China is of course also a very important greasy wool buyer. In fact, 1 out of 2 tons of greasy wool exported gets processed in Chinese mills. With numbers like these, it is important for both China and Argentina to have a strong and healthy relationship.
A long lasting relationship between China and Argentina
Marco Gallia, our Managing Director of Fuhrmann is currently the President of the Federation Lanera Argentina and he did a little further research on the China-Argentina relations. Marco found that the relationship between the two nations already started as early as 1958 when a local wool exporter by the company name Lauhsen exported greasy wool bales for the very first time.
Today, exports to China account for USD 50 million, which is around 25% of the total national turnover of wool.
Argentina’s wool clip is unique
Numbers like these are reached through the benefits and uniqueness of the Argentine wool clip. This includes that all of Argentina’s wool is mulesing free. In addition, Argentina is the biggest exporter of Organic wool in the world and invests heavily into recognised animal welfare protocols. All of these characteristics of the Argentinian wool clip is the result of an industry who has listened to consumer demands and has adapted its business models accordingly.
Chinese consumers are looking for natural sustainable fibre products
Besides quality and price, all of the above benefits are important factors for Chinese processors as well. As more and more Chinese consumers become affluent they look for healthy, sustainable and luxury products. Our Argentinian wool fits the bill and is, therefore, an important natural fibre for Chinese textile manufacturers and consumers.
The discussions between Argentinian and Chinese wool industry representative were lively and ideas were spun to ensure continued good relationships between the two countries.
Commercial and Sustainability Manager, Willy Gallia (on the left) and Managing Director Marco Gallia (on the right), both attended the reception on behalf of Fuhrmann.
Fuhrmann President, Memo Gallia (on the right) discussed wool industry matters with Argentinian government officials.