September 14, 2007
September 14, 2007 - One of the world's leading wool traders announced earlier this month that it will dissolve and liquidate before March 31, 2008. The Japanese company, Itochu Wool Ltd., was headquartered in Australia with a branch in Japan.
Itochu has been buying Australian wool since 1957 and became the largest buyer of Australian wool in the 1960s, a position it has maintained for 40 consecutive years.
Itochu Corporation stated that it is closing the wool buying arm of the business in an effort to increase operational efficiency for Itochu as a whole. All outstanding contracts and duties will be honored and fulfilled within the financial year, ending March 2008.
A representative of the Australian Wool Growers Association blames declining wool production and poor industry leadership for the decision. Current stock levels number less than 85 million, and he believes they will dip to 80 million by 2008.