Australian firm Elders will be closing its wool trading arm. The company says it is very expensive to carry on the wool trading business. However, the company's wool broking division will continue to function. It will sell wool on behalf of the producers, but the company will no longer buy wool at any of the auctions.
The trading division, which has operated as a buyer on behalf of specific overseas customers at Australian auctions, or acquired wool for later sale to processors, last year purchased about 62,000 bales.
The company will re-allocate the AU$20 million that was used for trading wool to its other trading divisions.
Elders also recently sold its stake in the Nanshan wool combing plant in China as part of the farm services firm's ongoing drive to streamline its portfolio.
Reprinted in part from Fibre2fashion