New Zealand is the second largest exporter of wool in the world, behind Australia. When drought has accelerated the decline in sheep numbers and the price decline has prompted herdsmen to retain wool, New Zealand's wool export may have dropped to its lowest level in 59 years.

In the year ending June 30th, New Zealand's wool exports may drop by 8.3% to 125 thousand and 600 tons of gross wool, meat and wool New Zealand said on 16.

This export volume may be the lowest export volume since 1950, and the country's sheep stock has dropped by 11%, and the price of wool has also declined.

Most of the herdsmen in New Zealand breed heavier wool grade sheep, producing 40% of the wool used by the world carpet manufacturers.

After decades of decline, the number of sheep has been relatively stable, which has dropped by 6% in the past two years. This has led to the fact that drought has forced herdsmen to reduce the amount of livestock, and the price has weakened, prompting the herdsmen to speed up the development of dairy industry.

Meat and wool New Zealand forecast that the price of New Zealand dollar will drop by 12% on average, at least 5 times this year, because the global construction slump has reduced the use of carpets and consumers' consumption of wool garments at higher prices has declined.

China is the largest buyer of wool in New Zealand. In the year ending June 30th, it bought 27% of New Zealand's wool output; Britain was the second largest buyer and bought 13%.

　　價格下降

Before August, world wool prices remained fairly good, suggesting good potential demand.

The subsequent credit crisis has hurt consumer information and reduced the loans of buyers. Meanwhile, the downturn in global construction has also accelerated the decline in wool prices.

The price of fine wool may be reduced by 22% to 7.31 NZD / kg.

Medium grade wool prices may drop by 4.4%, to 4 NZD / kg; 32 microns and higher gross wool prices may drop 12% to 2.25 NZD / kg.

These estimates are based on the assumption that the exchange rate between New Zealand dollar and the US dollar is 58 cents.

The demand for overseas markets is hard to rise because of the credit crunch and production cuts in New Zealand and Australia.

If the inventory is large, the price may be erratic when demand rises.