The American Sheep Industry Association reports that the 10-year decline in wool production worldwide is predicted to continue for at least two more years. The further reduction would bring supply and demand into better balance, thereby setting the scene for a medium-term price recovery in wool prices — provided demand recovers in Asia and Europe.

An article in a recent issue of The Wool Market, an international wool industry magazine, says global wool production is estimated to have dropped more than two percent in 1998-99, with declines in most major wool-producing countries, particularly Australia and the Commonwealth of Independent States (the former Soviet Union).

Further declines are expected until 2000-01 to 1349 million kilograms clean — the lowest level in 40 years and a two percent reduction from the season just ended — before a slow recovery to 1400 million kg. by 2004-05.

Woolmark officials say the fall in global wool production has been compounded by lower sales from stocks of the former Wool International and an estimated buildup of stocks in Uruguay, the Baltics and the Commonwealth of Independent States.

Global wool supply is predicted to fall a further two percent in 1998-99 to a low of 1399 million kg. clean. Despite the resumption of stockpile sales by WoolStock Australia, supply is expected to be flat in 1999-2000, but increase gradually in 2000-01 and 2001-02, as sales from stock and production begin to respond to a modest rise in wool prices.

Closer to home, the 1999 wool market has clearly discouraged investment in the U.S. sheep industry, reports Steve Meyer, ASI wool market consultant.

Asia is purchasing more Australian wool, but the large wool stocks and availability of other fibers suggests a modest international wool-price increase. At the same time, the U.S. textile manufacturing industry continues its disinvestment. Without strong domestic buyers, the United States may not fully participate in the international price upturn, reports Meyers.

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A five-hour pesticide recertification training is scheduled for Friday, December 10, at the Eden Multi-Purpose Center in Eden. Registration begins at 8 a.m. and the program at 8:30 a.m.

There will be a $10 registration fee at the door. Those wishing to attend should call the Concho County Extension office at (915) 732-4304; McCulloch County Extension office at (915) 597-1295 or the Menard County Extension Office at (915) 396-4787.

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At the urging of the American Sheep Industry Association, the Clinton administration has declined a request by Australia and New Zealand to form a World Trade Organization dispute panel to investigate tariffs imposed on lamb imports to the U.S.

The two countries are expected to lodge a second request for a panel at the next meeting of the WTO Dispute Settlement Body, which will take place at the meeting in Seattle.

The demand for a dispute panel follows President Clinton's July ruling on the sheep industry's Section 201 case against the surge of lamb meat imports into the domestic market. Clinton ordered tariffs imposed for three years on lamb imports from Australia and New Zealand and pledged $100 million in assistance to the domestic industry to help boost its competitiveness.

As expected, the Australian and New Zealand governments appealed Clinton's decision to the WTO. A decision on the appeal should take about 18 months. All restrictions remain in place during the appeal process.

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