By Malinda Geisler, content specialist, AgMRC, Iowa State University, malindag@iastate.edu.

Profile reviewed March 2010.
 

Production
Shorn wool production in the United States was 30.9 million pounds of greasy wool in 2009, down 6 percent from 2008. U.S. wool output, in general, is about half the amount compared to 10 years ago. Sheep and lambs shorn totaled 4.4 million head in 2009. The top states for wool production are Texas, Wyoming, Montana and California.

The average price paid for wool in 2009 was 79 cents per pound, with a total value of $24.4 million, down 25 percent from $32.5 million in 2008.

While lamb meat production has grown during the past 20 years, U.S. wool production per animal has remained fairly constant. The average wool fleece per animal is 7.35 pounds.

The Farm, Conservation and Energy Act of 2008 authorizes the MAL and LDP programs for the 2008 through 2012 crops of graded and ungraded wool, mohair and unshorn pelts. The program is administered by USDA's Farm Service Agency.

Demand
Most wool produced in the United States is sold as raw fleece wool. Possible markets for those interested in pursuing direct marketing include: (1) fleece wool; (2) processed wool; (3) wool crafts; and (4) the pelt market.

A niche within the wool market is organic wool. According to a 2005 survey by the Organic Trade Association, 18,852 pounds of grease wool were produced. The Organic Trade Association has adopted organic fiber processing standards for wool and cotton. The standards cover all post-harvest processing from storage to labeling. Organically grown products appeal to consumers who have allergies or are sensitive to chemicals. Organic wool offers producers the opportunity to sell the wool at a premium over traditionally raised wool.

Please see the Organic Lamb page for additional information.
 
Processing
Most U.S. woolen mills are located on the East Coast. In the eastern United States, wool is typically marketed through wool warehouses or wool pools because flocks produce smaller volumes of wool. Much of the wool produced in the western United States is marketed through wool warehouses. Nearly 100 percent of all wool grown in Texas and New Mexico is marketed through a warehouse. There are more than 40 warehouses throughout the United States. In addition to warehouses, more than 30 brokers/dealers purchase wool from producers across the United States.

According to USDA, raw wool mill consumption totaled 49.9 million pounds during 2003. Apparel wool consumption during 2003 was 43.8 million pounds. Carpet mill consumption accounted for 6 million pounds. As of 2004, the U.S. Bureau of Census discontinued the Consumption of the Woolen and Worsted Combing system. USDA estimated the 2007 U.S. raw wool consumption at 30 million pounds.

In the last 10 to 15 years, the United States was using about 75 percent of its wool. Today, three-quarters of domestic production is exported. Reasons for the shift include labor costs and environmental regulations.

Exports
Exports of wool not carded in 2009 were 7,293 metric tons (MT). China buys about 60 percent of all U.S. wool exports. Other top destinations for U.S. wool exports are India and Germany.

Imports
Imports of wool not carded in 2009 totaled 4,952 MT during 2009. New Zealand and Australia were the top two countries for U.S. wool imports. New Zealand accounts for about 80 percent of the coarse grades of wool. Australia accounts for about 70 percent of the finer grades of wool.
 
Competition
U.S. wool supplies compete with coarser grade wools from New Zealand and finer wools from Australia.

Australia is the largest supplier of apparel wool. Two-thirds of the wool sold on the world market originates from Australia. Major markets for Australian wool include China, Italy, India, Taiwan, Czech Republic, Slovak Republic, France and Germany.

New Zealand is the world’s second-largest wool producer and exporter. Most of the wool production, 90 percent, is exported as fiber. New Zealand is the leading producer of coarser or strong wool used primarily for interior textiles such as carpets, blankets, upholstery and yarn. China accounts for about 25 percent of New Zealand’s wool exports. Other export markets include the United Kingdom, India, Belgium, Italy, Australia and Germany.


Sources
American Wool Market, American Sheep Industry Association.

Australia Now, Australian Agriculture Fisheries and Forestry, Australian Department of Foreign Affairs and Trade.

Cotton and Wool Outlook, Economic Research Service (ERS), USDA.

Cotton and Wool Yearbook, ERS, USDA.

Global Agricultural Trade System (GATS), Foreign Ag Service (FAS), USDA, 2009.

How U.S. Wool Industry Works: Export Business has Changed, Wool Briefs, Sheep Industry News, 2007.

New Zealand Wool, New Zealand Sheepbreeders Association.

Organic Trade Association adopts organic fiber processing standards, Organic Trade Association, 2004.

Organic Wool Fact Sheet, Organic Trade Association.

Sheep and Goats, National Agricultural Statistical Services, USDA.

Sheep and Wool: Overview, ERS, USDA. 



Profile originally created January 2003 and links checked March 2010.