As the year 2024 approaches its end, there is a glimmer of hope in Uruguay’s wool industry, with a slight uptick in exports. However, the overarching sentiment remains somber and dismal. Let’s delve into the latest developments in the Uruguayan wool market:
- In the first ten months of the year, Uruguayan exports of ovine goods amounted to US$ 158.2 million, marking a 7% decrease from the same period last year. While this represents an improvement from the previous months when exports saw declines of 10% and 13%, the industry is still struggling to regain its footing.
- The Uruguayan Wool Secretariat (SUL) reports that despite a modest advancement, the market continues to face challenges that weigh it down, reminiscent of the situation in 2023.
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Examining the numbers, wool and byproduct exports for the nine months totaled US$ 111.3 million, showing an 11% increase from the previous year. China emerged as the largest importer, accounting for 44% of the exports, followed by Italy at 23%.
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Revenue from greasy wool saw a significant growth of 106%, reaching US$ 39.7 million. On the other hand, scoured wool exports increased by 42% to US$ 17.2 million, while tops experienced a decline of 20% to US$ 44.7 million. Overall, the total volume of exports stood at 28.1 million kilograms, a promising figure compared to previous years.
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When it comes to the breakdown of exports by category, China dominated the market for greasy wool with a share of 87%, followed by Bulgaria at 6%. Similarly, for scoured wool, China held a majority share of 59%, with India at 11%.
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Ovine meat exports witnessed a downturn, with frozen meat exports declining by 33% in volume and 32% in dollars. Brazil, China, and Oman emerged as the key markets for frozen and bone-in ovine meat.
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Notably, there were no exports of live sheep or skins in the nine-month period, according to Uruguayan Customs data. This highlights the challenges faced by the industry in diversifying its product range.
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Looking back at previous years, 2023 saw a decline of 23% in wool exports compared to 2022, with total exports amounting to US$ 128.5 million. Ovine meat exports also fell by 14% to US$ 90.8 million.
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The dwindling performance of the sheep industry has had a substantial impact on Uruguay’s national flock, which declined by 9.4% in 2024, as per the latest census. The current flock stands at 5.367.604 head, reflecting a sharp contrast to the 26 million sheep recorded in the 1991 census.
In conclusion, while there are glimmers of improvement in Uruguay’s wool exports, the industry continues to grapple with challenges that hinder its growth. It is crucial for stakeholders to explore innovative strategies to revitalize the sector and ensure its sustainability in the long run.
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