Welcome Agriculture Wool and Sheep Production In the Global Market James Walker. sponsored by

Transcription

1 Welcome Agriculture Wool and Sheep Production In the Global Market James Walker sponsored by

2 Meander Rise Tasmania Fine wool Merino Corriedale and Hampshire Prime Lamb Copping Grain Potatoes Poppies Seed crops Forestry.

3 Nuffield Scholarship In 2006 I won the Nuffield Scholarship sponsored by Australian Wool Innovations. I am studying Agricultural, wool and sheep production in the global market. sponsored by

4 Objective and Aims & Subject Research To look at agricultural production and new production systems. Look at short and long term market trends and production Look at agricultural opportunities.

5 Countries Studied UK = 4 main farming areas France = 2 cropping areas Italy = {AWI} Wool preparation, marketing and Manufacturing. USA=New York {AWI} Wool preparation, marketing, high fashion shops and agriculture. Uruguay = agriculture and sheep/wool production. Southern Argentina and southern Chile = agriculture and sheep/wool production. New Zealand = agriculture and sheep/wool production. And several other countries.

6 An Overview of the Global Agriculture Issues 1. The demand for animal proteins. 2. Water the lack of. 3. The use of biofuel. 4. The change of land use from food/fibre. 5. Environment and food safety issues. 6. The use of genetically modified crops. 7. Marketing and Promotion:

7 Growing World Economies Country: 1. China Population Size: 1.3 Billion Growth in GDP: 9.9% 2. India 1.1 Billion 8.4% 3. Vietnam 85 Million 7.6%

8 World Commodities World Wheat Stocks 2001: 300 Days Cover. 2007: 75 Days Cover. Commodity Prices: Wheat Prices +50% Maize +75%

9 The China Effect 1984 Chinese economy was one fourteenth the size of the US economy Chinese economy was one sixth the size of a much bigger US economy. Prediction: By 2030 Chinese economy will be larger than the US economy.

10 The China Effect To do this, it has to build 2 and a half London s every year. It is building the equivalent of the UK s Power Grid each year. In 2005 China used 54% of world cement.

11 The China Effect China is the biggest grain producer in the world with 400 million acres of grains. Every 5 years it loses 3% of its farmland to urbanisation. 70% of its farmland has to be irrigated. The Chinese harvest has already contracted by 70 million tonnes which is equal to the entire Canadian harvest.

12 The China Effect

13 China: Demand, Supply, Imbalance China feeds 22% of the world s population with only 7% of the world s arable land. It takes 1,000 tonnes of water to produce a tonne of grain, valued at 200 dollars. 1,000 tonnes of water can be worth up to 10,000 dollars to industry and create a lot more jobs. Instead of importing water China will import grain.

14 China and South East Asia Major Trends in the Market Increasing in consumption of meat, seafood, dairy products, vegetable oils, fruit, and vegetables away from traditional grain staples {rice}. Organic/sustainable farming is getting popular with the increasing awareness of the health and environment protection. China is changing from a net exporter of agricultural products to a net importer.

15 South America In areas visited there appears to be prospects of huge agricultural development possibilities! Their farming technology is progressing rapidly and in some areas is very advanced e.g. AI use and technology. The cost of production is more than competitive.

16 South America Substantial increases in: Grain production: e.g. Soybean and wheat. Dairy production. Tree plantations. Beef production. Decreasing / stable: Wool production Sheep meat: {local, and export to EU, USA}

17 South America Wool and sheep production The production of high quality Corriedale and merino wool is being achieved. Standard of clip preparation and marketing can be improved to meet the standard being required by the textile industry. A substantial proportion of their production is processed into wool tops in their own country.

18 An Overview of Global Wool and Sheep Production: 1. Wool and sheep production to the farm gate: 1. Breeding 2. Production 3. Harvesting and marketing

19 Breeding Pure high quality Merino for wool production. Prime lamb production be developed as a stand alone industry. Cross flock evaluation and the greater use of genetics between the sheep producing countries.

20 Production Increasing the lambing and calving percentages. This is the driver of all production. Increased numbers is the driver for greater genetic gain and the use of higher quality genetics for around the world. Increased nutrition is the key to the above production drivers.

21 Harvesting and marketing High standard of clip preparation is essential. Traceability along the wool pipe line to give feedback to the producer. Further development of the structured selling system. Distinct separation between the wool from the merino clip and the prime lamb wool clip.

22 Harvesting and marketing High standard of clip preparation is essential.

23 An Overview of Global Wool and Sheep Production: Wool and sheep production beyond 1. the farm gate: Wool: 1. Processing Trends 2. Meat: 1. Markets 2. Marketing and Promotion 1. Markets 2. Marketing and Promotion

24 Wool Processing Trends 60% of Australian wool is processed in China. There is only very few high quality mills left in Italy, most of them have moved, either to China or eastern Europe, because of the cost of production and environmental issues.

25 Wool Processing Trends Fully integrated woolen mills

26 Wool Market The use of natural fibres The demand for organic and sustainable products. Demand is increasing for finer high quality wool used in very fine knitwear and sportswear. The demand for stronger wool is static.

27 Marketing and Promotion The Marketing of a Brand: Australian Merino Woolmark Promote an Image of a wonderful Country Australia Promote wool beside the image of the wonderful country Merino Use the Brand known by 60% of the world population Woolmark Well known Brand Icebreaker & Driza Driza-Bone

28 Marketing and Promotion

29 Wool Marketing and Promotion Promotion and the use should be aimed at the very best fashion designers and the designers of the major department stores, because they set the fashion trend.

30 Meat Markets The demand for high protein food is increasing. The biggest demand increase for Meat Protein is coming from Asia. Because of: 1. The increase in income and the big population. 2. The demand for high quality and higher protein in their every day food intake.

31 Meat Marketing and Promotion The Marketing of a Brand: Australian Lamb and Beef Promote an Image of a wonderful Country Australia Promote meat beside the image of the wonderful country Lamb and Beef Promote: 1. High quality standards and health standard 2. Sustainable or organic 3. Natural 4. Traceability

32 Agriculture Wool and Sheep Production In the Global Market Conclusions Major Trends in the Production and Markets Future prospects Recommendations

33 Conclusions Major Trends in the Production and Markets Future prospects Diverse opportunities for Australian agriculture: - Wool, sheep meat, dairy, beef, horticulture, grain.

34 Recommendations Marketing and Promotion 1. Increase Marketing and Promotion. 2. The promotion of smaller numbers of brands. 3. The selling of an image, then putting the product beside it.

35 Recommendations Work closer with other countries to sell primary products. {Other countries producing wool and sheep meat are not competitors but other products are e.g. cotton and pork/chicken } Adoption of the highest animal welfare, food safety and environment standards to give us access to the widest possible markets.

36 Recommendation 1. We need to in improve QA standards and clip preparation to minimize dark fibre and modulated fibre contamination. 2. Continue to organise study tours to different wool-related destinations. Firsthand knowledge is invaluable. Also have a working exchange, with other countries. Encourage younger wool producers to go on these tours and exchanges.

37 Recommendations to Governments 1. Increase funding for Research and Development. 2. Extension and delivery of Research and development back to agriculture and through the pipe line. 3. Major capital expenditure on infrastructure e.g. water. 4. Help funding on promotion and marketing of Australia and its products. 5. Maintain and improve protection of Australia s animal and plant health standards.

38 Aim We must keep focused on getting as many consumers buying as much product at the highest price possible.

39 Quotes: Life is a Journey of Lifelong Learning There is no such thing as a level playing field in world trade! Never say I cannot do it! If you set your mind to do something don t let anything get in the way to do it! I had a go and achieved one of my Goals! A Nuffield Scholarship!

40 Life is a Journey of Lifelong Learning Australian Nuffield Farming Scholars Association Phone: Fax: enquiries@nuffield.com.au Further details on Nuffield may be downloaded from the Nuffield website: Thank You James Anna and Stephen Walker Meander Rise 145 Westwood Road PO Box 2, Carrick, Tasmania, Australia 7291 Phone: Mob: ajswalker@bigpond.com.au sponsored by