Mohair Blend Worsted Manufacture

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1 Mohair Blend Worsted Manufacture A report for the Rural Industries Research and Development Corporation by Robert Pearce June 2001 RIRDC Publication No 01/091 RIRDC Project No ARI-1A and ARI-2A

2 2001 Rural Industries Research and Development Corporation. All rights reserved. ISBN ISSN Mohair Blend Worsted Manufacture Publication No. 01/091 Project No. ARI-1A and ARI-2A The views expressed and the conclusions reached in this publication are those of the author and not necessarily those of persons consulted. RIRDC shall not be responsible in any way whatsoever to any person who relies in whole or in part on the contents of this report. This publication is copyright. However, RIRDC encourages wide dissemination of its research, providing the Corporation is clearly acknowledged. For any other enquiries concerning reproduction, contact the Publications Manager on phone Researcher Contact Details Robert Pearce RMB 1340 San Mateo Court CLONBINANE VC 3658 Phone: (03) Fax: (03) acacia@ontherun.com.au RIRDC Contact Details Rural Industries Research and Development Corporation Level 1, AMA House 42 Macquarie Street BARTON ACT 2600 PO Box 4776 KINGSTON ACT 2604 Phone: Fax: rirdc@rirdc.gov.au. Website: Published in June 2001 Printed on environmentally friendly paper by Canprint ii

3 Foreword The report is based on a project that was designed to assist in the achievement of Objective 2 of the Corporation s Rare and Natural Fibres (Animals) 5 year R&D Plan which is To Expand Value Adding and Product Development in Australia, through assessment for the Corporation and the mohair industry of the interest and potential commercial opportunity of mohair blend worsted manufacture. Although the sample yarn produced performed well in weaving, overseas evaluation was that the fabric would at present not command the necessary viable sales. The process of evaluation adopted reinforces the value of realistic testing by marketers before scaling-up production. This project was funded from industry revenue which is matched by funds provided by the Federal Government. This report, an addition to RIRDC s diverse range of over 700 research publications, forms part of our Rare Natural Animal Fibres Program which aims to facilitate the development of new and established industries based on rare natural fibres. Most of our publications are available for viewing, downloading or purchasing online through our website: downloads at purchases at Peter Core Managing Director Rural Industries Research and Development Corporation iii

4 Contents Foreword... iii Executive Summary... v 1. Background Objectives Project Design and Methodology...3 Stage Stage Stage Results...4 Stage Stage Stage (a) Re. Fabric Production and Marketing:...5 (b) Re. Feasibility and Operation of Forward Contracts: Conclusions and Implications...6 iv

5 Executive Summary The project was undertaken in three stages. Stage 1 In liaison with industry the mohair type chosen for the project was above 32µ in fineness and the fabric to be produced was for marketing in the furnishing trade. Jiemba Textiles, an Australian based firm, provided advice, assistance and commitment to identify possible markets overseas. Stage 2 Jiemba designed and facilitated manufacture of the sample fabric. Approximately 67kg of yarn of 2/20 worsted count mohair yarn using approximately 33µ fibre was produced, a sample of which was used by Jiemba to initially make a plain sateen upholstery fabric. Stage 3 In response to advice received from the USA client assessing the fabric a changed finishing specification was undertaken and the product resubmitted. Extensive market evaluation indicated that fabric of this type would not command viable sales volume in USA or other markets, at this time. Although the project was unsuccessful in all its objectives and aims, the procedure used and the marketing concerns and challenges have been documented for use as a guide should further market evaluations be carried out in the future. The balance of the yarn is available to Mohair Australia for future investigations. In an endeavour to seek information on the supply of mohair for processing commercially the type of product used in this project, a model for use in preparing Forward Contacts has been prepared. It seems that the mechanics and expertise to manage such an operation exist within the industry organisations. v

6 1. Background The project was designed to assist in the achievement of Objective two of the RIRDC Rare and Natural Fibres (Animal) 5 year R&D Plan for which is To expand Value Adding and Product Development in Australia, through the assessment for RIRDC of the interest and potential commercial opportunity of mohair blend worsted manufacture. The potential benefits of such a project were seen to be: Increased demand for Australian produced mohair, with particular emphasis on those fibre types of greater supply and lesser current demand The encouragement of local value adding to Australian mohair, giving greater assurance of Australian produced fibre being used Commercialisation of any suitable results from research project UNS-8A A greater understanding by the mohair industry of the commercial realities and the magnitude of investment and risk involved in the launch of a new product The ability of a successful product to act as a seed for commercial development of other similar or related mohair products. 1

7 2. Objectives The overall objectives developed in the project were: To Expand Value Adding and Product Development for mohair in Australia To Facilitate commercial design, production, and marketing of a mohair product. As the project developed specific concerns were raised by Jiemba Textiles, the firm responsible for the providing advice, assistance, designing and facilitating manufacture and overseas assessment of the sample fabric. These concerns were: That sufficient volumes of fibre be available as and when required. That historically high fluctuations in fibre price be avoided, and That fibre be available at a broadly predictable price level over reasonable time periods relative to the nature of the selected market, and its fashion cycle. Attention to these matters was considered by Jiemba Textiles as vital to support the very high levels of expenditure involved in developing and marketing a new range of fabrics. A successful outcome would see the development of a 'Forward Contract' model and its use to address these concerns. Thus an additional objective of the project was: To Develop a Forward Contract model for mohair supply. 2

8 3. Project Design and Methodology The project was essentially divided into three stages Stage 1 a) Obtain advice from the mohair industry regarding fibre types requiring principle assistance. b) Investigate suitability of fabrics produced under RIRDC s project UNS-8A for incorporation into the program. c) Approach suitable Australian fabric manufacturers and marketers, seeking co-operation and input to program objectives, ie a willingness to carry out market research, followed by product design, manufacture of sample material, and market development. The desired outcome of this was a commitment from a selected organisation having the necessary resources to achieve the above. Stage 2 This stage would encompass facilitating the implementation of the project, including: a) Market research and suitable product identification. b) Product specification development. c) Yarn specification development and sourcing. Stage 3 Based on recommendations from stage 2: a) Maintain regular contact with Jiemba Textiles and assist with any concerns they may have regarding such matters as further changes required to fibre or yarn specifications, yarn quality, or commercial supplies for production. Facilitate discussions between Jiemba Textiles and yarn/fibre suppliers so that they may be assisted with specifications and mutual understanding of needs leading to their ability to interact independently in the future. b) In conjunction with Chris Cull (CEO of Mohair Australia), examine the feasibility and operation of forward contracts for raw mohair supply, such that fibre may be available for commercial production of fabric by Jiemba Textiles, in a way which addresses their expressed concerns. Addressing the development of a Forward Contract model would likely involve cooperating broker/s and growers Chris Cull would carry out the work involved in this liaison with brokers and growers, with the work involved in meeting the needs of the mohair purchasers and users being the subject of this application. 3

9 4. Results Stage 1 a) Discussions and communications were held with all the major industry bodies, with a view to obtaining information regarding mohair types requiring most assistance, current annual production of these types, and industry viable price estimates. The general conclusions from these discussion were that: i. Mohair type facing the least demand is adult fibre above 32µ ii. Volatility of price and demand remains an historical problem. iii. Long term grower viability should exist at the following price levels (at current day values). Kid types c/kg. Young goat c/kg. Adult c/kg. iv. Approx. current production volume of above 32µ types is 180,000 kg. pa. b) Discussions were held by Dr Xungai Wang the Principle Investigator for RIRDC s project UNS-8A, to determine if use could be made of the results obtained under this project. Concern was expressed that the fabrics produced had not been subjected to performance testing. The fabrics produced were knitted, were of a type suitable for apparel, and from fibre not specified as the type needing the most assistance. For these reasons it was decided not to make use of these results in this project. c) Discussions were held with Chris Cul, in order to ensure that this work was complementary to the work being carried out by him in a RIRDC project entitled Assessment of Alternative Marketing Opportunities and Strategies for Mohair. d) A variety of appropriate samples were obtained on loan, for use in demonstrating properties of mohair. These were examined and where appropriate analysed and a report prepared. A report was also prepared listing the desirable properties of mohair and fabric properties of mohair and mohair blends, together with references to research which had been done in these areas. These reports were designed for presentation to potential project partners. e) After seeking advice, an approach was made to Jiemba Textiles Pty Ltd a company considered to have the necessary resources to assist with the objectives. We were most fortunate in obtaining their advice, assistance, and commitment at an early stage. In the first instance they agreed to consider possible markets for mohair products, and being a company specialising in furnishing fabrics this seemed an appropriate starting point for work in the micron range needing most attention. Stage 2 a) Jiemba Textiles were able to identify a potential market for plain sateen upholstery fabric in preferably 100% mohair, promoted as Australian mohair, in both Australia and USA. They undertook to co-operate in a program for development, design, manufacture, promotion and sales, using their knowledge experience and resources. They agreed to design and manufacture sample fabric for evaluation upon being provided approx. 60 kg. of yarn, preferably 100% mohair, count 2/20 worsted, 450Z/450S. Micron of suitable fibre is unlikely to be above average 33µ because of the count requirements. These and other specification requirements were to be tightly controlled and lustre to be the major distinguishing feature. A target monthly volume of 2000 sq.m. requiring about 1500 kg of unscoured mohair giving 1000 kg of yarn, was envisaged. b) Australian Mohair Traders (AMT) agreed to provide the necessary fibre (about 110 kg) without charge as a donation to Mohair Australia for this work. AMT provided this fibre under an earlier offer to assist if the need arose. For this reason other traders were not approached although they may well have been fully prepared to assist. 4

10 c) Elite Fibres Australia Pty Ltd, considered to have the necessary plant and experience, agreed to process this sample material into yarn, without charge, as a contribution to industry development. d) Jiemba Textiles emphasised that the cost and effort in launching a new fabric range is substantial and carries significant risk. In the event of a successful sample run they would look to the industry to provide assistance and support, backed with ongoing fibre supply assurance, price stability, and manufacturing capacity to ensure a reliable service could be maintained for their customers. They proposed a meeting with Industry representatives in the future, to which Mohair Australia agreed. e) A batch of fibre was worsted spun into yarn meeting the specifications as required by Jiemba, using adult/young goat fibre, the top from which tested at 33µ, 25% CofV micron, and 90mm.. MFL. Processing details: Scouring detergent scoured to,0.5% total fatty matter. Carding Tibeau worsted card with metallic clothing. Combing Schlumberger rectilinear comb. Spinning Cognitex conventional ring spun to 44 tex and 450 tpm Z. Twisting Savio 2 for 1 at 450 tpm S. Samples of the top and yarn were retained for future reference. Some evidence suggests slight contamination with dark fibres, originating from processing. The product requirements are most critical and this area is one needing further and continual evaluation of procedures and vigilance. Yarn evenness, strength, and elongation were all evaluated subjectively and were satisfactory. It was considered that the production of this yarn should not present problems in larger scale, although an upper limit of 33µ on mean fibre diameter is necessary to ensure adequate standards of yarn strength and evenness are maintained. f) Approximately 67% kg of yarn was delivered to Jiemba for their continuing work with Jiemba targeting exposure in USA in September 1999 if sample fabric is satisfactory. Sample fabric planned is plain sateen upholstery fabric of 500g/sq.m., piece dyed into a range of colours for marketing to furniture manufacturers in the top of market domestic and corporate sectors. Stage 3 (a) Re. Fabric Production and Marketing: Using half of the available material, the above yarn 100% mohair yarn of count 44tex x 2(2/20 worsted count) - (in both warp and weft), was woven into a weft faced sateen fabric. Jiemba reported that the yarn performed well in weaving without problems either with yarn breaks or fabric distortion. Half of the resulting fabric was dyed and finished and a sample presented to a selected Jiemba Textiles client in Chicago USA. This client was unhappy with the finish of the fabric and requested a resampling. Accordingly, the remaining half of the fabric was finished to revised specifications and represented for extensive evaluation by the New York office of the Chicago client. On completion of this evaluation the New York office advised that they did not wish to proceed as they felt that fabric of this type would not command the necessary viable sales volumes. Jiemba Textiles have advised that this represents as far as they can go in this exercise. They cannot consider exposing the fabric to the domestic or other markets as potential volumes of demand would not justify the marketing costs involved. However they consider the exercise 5

11 has been valuable and assert that this method is the only way to finally decide a markets requirements. From the Mohair Industry point of view a greater appreciation of the needs and concerns of a major potential marketer of mohair products has been obtained. Throughout, the work of Jiemba Textiles was cooperative, professional and competent, and it is considered that a thorough evaluation has been made. (b) Re. Feasibility and Operation of Forward Contracts: Investigations were undertaken by Chris Cull (the CEO of Mohair Australia) who held discussions with a number of major mohair growers. At the time prices for the required mohair were starting to rise but the response was still positive from those approached who recognised that historically fluctuating prices for coarser fibre has been a problem to producers and customers. These discussions immediately foresaw the need for Broker involvement, resulting in an approach being initiated with such a Broker, seeking comments and potential commitment. Using this information, and the knowledge of the customers concerns, the following model was prepared for trial if circumstances were favourable: Potential volume to be determined, reflecting estimated forward requirements, (in this case 1500 kg. / month - it is noted that supply at these levels may have been a problem to overcome). Necessary involvement of an experienced Broker to collect and forward the fibre; to ensure correct preparation to required specifications; and to arrange for payment. The need for an assured forward commitment on behalf of the purchaser. Preparation of a workable and enforceable 'Contract for the Supply of Fibre'. The identification of a body to make direct contact with participating growers (either the Broker or Mohair Australia) in order to promote the offer. The selection and number of these growers would depend upon their commitment and ability to fulfil the contract. As the next potential Stage of this project ie. the production of substantial commercial quantities of fabric, will not proceed, practical trials of this model could not be carried out. This is doubly unfortunate as just those conditions of which Jiemba Textiles expressed so much concern currently exist ie. a substantial increase in price of the mohair raw material occurring in the period between development and acceptance of a product, and the doubtful supply of fibre in sufficient volumes on a regular basis. It was hoped that securing forward contracts for supply would overcome these problems. 5. Conclusions and Implications Re. Fabric Production and Marketing. a) With the cessation of involvement by Jiemba Textiles, this project was brought to a close. 6

12 b) The procedures used and the marketing concerns and challenges expressed should be noted and used as a guide should further market investigations be carried out in the future. c) The balance of the yarn, together with a sample of the fabric will be forwarded to Dr Doug Stapleton for retention on behalf of Mohair Australia. This material should then be available for future reference or use by Mohair Australia in the light of changing fashions or markets. Re. Feasibility and Operation of Forward Contracts. a) The model should be used as a reference in the future to guide mohair supply to any commercial customers expressing similar concerns to those of Jiemba Textiles. b) Realistic testing of this process can only be carried out under market conditions at the time. In the absence of a 'real life' situation little more can be anticipated beyond the (then) positive support from the growers approached for the proposal. c) If such a situation were to arise then it seems, based on the above, that the mechanics and expertise required to manage such an operation exist within the industry organisations. 7