Post on 17-Jun-2020
Ben Lyons, Supply Chain Integrity and Knowledge Services Manager, Shanghai
Australian Merino wool: Science, art and evolutionTodayTomorrow
Product developments and innovationsPriorities for the future
The romance of Australian Merino wool: Science, art and evolutionTodayTomorrow
Product developments and innovationsPriorities for the future
Australian Wool Innovation (AWI) is the world’s leading Merinowool fibre marketing and innovation company.
AWI is a not-for-profit organisation investing close to $60 millioneach year in marketing & research.
Our goal is to build demand for Australian Merino wool andthe profitability of our shareholders: Australian wool growers
Who is Australian Wool Innovation?
Australian Wool Industry
30,000 farms1,000 sheep to 40,000 sheep10 bales to 1,500 bales13 micron to 40 micron0.0% to 25% VM55mm to 130mm10 to 65 N/Ktex30,000 different types of wool22,000 registered
Woolclassers
0
20
40
60
80
100
16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42
micron
mkg
gre
asy
Australia New Zealand South Africa Uruguay
Wool Usage and Fibre DiameterSource: AWI
carpets
filled bedding
women’s woven outerwear
Superfine merino19 um and finer
Merino20 - 24 um
Medium crossbred29- 32 um
Fine crossbred25-28 um
Broad wool32 um and broader
men’s woven outerwear
knitwearunderwear
socksblankets
upholstery
rugs
Wool has intrinsic properties that translate to garment functionalities that make it ideal for apparel use.
Natural BreathabilityNatural durabilityNatural stretch and drapeNatural odour resistanceNatural temperature controlNatural fire and static
resistanceNatural UV protectionNatural sweat and moisture
control
Wool: naturally absorbs water vapour and is breathable
Wool is an active fibre.
It is able to absorb and desorb moisture vapour as conditions around it change.
This gives wool is its fantastic ‘comfort’properties and makes it ‘breathable’.
The romance of Australian Merino woolScience, art and evolutionTodayTomorrow
Product developments and innovationsPriorities for the future
1.88%1.17%
36.91%
60.04%Clean Wool
Man madefibresCotton
Others
World Fibre Production – 2007 SharesSources: International Rayon and Synthetic Fibres Committee, Japan Chemical Fibres Association, AWI. Note: wool and cotton production on a seasonal basis (2006 = 2005/06), man-made fibres exclude olefin production.
Total: 65,450 mkg
World Wool Production and Supply (mkg clean)
1989/90 1995/96 2004/05 2005/06 2006/07 2007/08f
Australia 724 452 332 327 303 286
New Zealand 231 199 158 172 165 163
China © 103 131 174 176 177 178
Uruguay 68 56 28 34 35 32
UK © 51 46 29 29 27 28
Argentina 79 43 50 48 48 46
South Africa 59 37 28 28 28 26
Other 678 482 421 419 420 417
World Production 1992 1445 1220 1232 1203 1178
Stock Changes -384 22 -12 -2 33 n.a.
World Supply 1608 1467 1208 1230 1236 1178
f = forecast, (c) calendar year data 2006/07 = 2007.Sources: AWI, official statistics and industry bodies.Last updated 6 May 2008
0
20
40
60
80
100
Australian Wool Wool Cotton MMF*
Industrial
InteriorTextiles
Apparel
% 0.327 1.229 24.110 39.220
66%
26%
8%
Fibre Use by Sector – 2006(e)Sources: The Woolmark Company, ICAC, CIRFS, CMAO. Note: Man-made fibre includes oil based and cellulosic fibres
Fibre consumption (million tonnes)Total = 65.450
0
1
2
3
4
5
6
7
Aug-
98Au
g-99
Aug-
00Au
g-01
Aug-
02Au
g-03
Aug-
04Au
g-05
Aug-
06Au
g-07
0
1
2
3
4
5
6
7
Aug-
98Au
g-99
Aug-
00Au
g-01
Aug-
02Au
g-03
Aug-
04Au
g-05
Aug-
06Au
g-07
Wool to cotton Wool to synthetics
Long run average
Long run average
Wool Price Relatives - 21 Micron WoolSource: AWI, Cotton Outlook, PCI Fibres & Raw Materials. Data to April 2007.
Fibre Shares of Imports of Women’s Outerwear (Value Basis)Sources: Japanese Trade Statistics & US Dept. of Commerce. Womenswear includes suits, coats, jackets, trousers, skirts, dresses.
5%
15%
25%
35%
45%
55%
1998
1999
2000
2001
2002
2003
2004
2005
2006
Japan
Wool
39%
Cotton
Synthetics
48%
13%
5%
15%
25%
35%
45%
55%
65%
1998
1999
2000
2001
2002
2003
2004
2005
2006
US
Wool
28%
Cotton
Synthetics
65%
6%
Fibre Shares of Imports of Knitwear (Value Basis)Sources: Japanese Trade Statistics & US Dept. of Commerce. Knitwear includes sweaters/cardigans and similar.
20%
25%
30%
35%
40%
45%
1998
1999
2000
2001
2002
2003
2004
2005
2006
Japan
Wool
42%
Cotton
Synthetics
21%
37%
5%
15%
25%
35%
45%
55%
65%
75%
1998
1999
2000
2001
2002
2003
2004
2005
2006
US
Wool
66%
Cotton
Synthetics
26%
8%
Speed & ChangeGeographic Shift of early stage wool processing
0
50
100
150
200
250
300
350
1960 1970 1980 1990 2000
UK
Italy
Japan
China
Raw Wool Imports (Mkg*)
Australian Merino’s Environmental PathwayAustralian woolgrowers go beyond sustainability, they are working to improve
their natural environment ensuring the resource is available for generations to come.
The results of a Australian government survey of Australian woolgrowers found that:90% consider Natural Resource Management (NRM) a key component of their whole farm enterprise.91% woolgrowers were either actively doing something about natural resource management.
Improvements in Australia’s farm practices are aimed at rehabilitating land; halting and reversing the loss of native vegetation; improving water quality; and enhancing biodiversity.
Australian Merino wool growers
Care for and enhance the environment upon which they earn their living: “the environment is their lifeblood”
Improvements in Australia’s farm practices are aimed at rehabilitating land; halting and reversing the loss of native vegetation; improving water quality; and enhancing biodiversity.
The romance of Australian Merino woolScience, art and evolutionTodayTomorrow
Product developments and innovationsPriorities for the future
AWI LCA process
Source: AWI Expert Advisory Panel on Wool LCAFebruary 2008
• AWI initiated its LCA project in 2006, in partnership with CSIRO.
• Defined 3 typical supply chains• Fine wool, high rainfall -> Western European use• Medium wool, mixed enterprises -> Asian suits• Coarse wool, pastoral zone -> outerwear knits.
• Farm to retailed garment, then back to soil (complete life cycle).
• The project adopted ISO 14040 as a framework, and is focussed on water and carbon dioxide emissions.
Project Scope
3 typical enterprises 3 typical supply chains
High rainfall fine wool specialist18.5 um, Armidale or Western Vic
Sheep/Wheat Zone Mixed Enterprise20.5 um, Dubbo or Katanning
Pastoral Zone sheep specialist22.5 um, Burra or Broken Hill
Lightweight, fine gauge knitwearSupply chain via Italy to W. Europe
Mens/Womens Pure Wool SuitingSupply chain via China to Europe/USA
Woollen spun knitwearSupply chain via China/HK to Europe
Project Scope
Assumptions are critical
• Enterprise boundaries were defined such that we assumed:
• Non-irrigated extensive pasture• Sheep were allowed to urinate.• We did not count respiration (water returned to atmosphere).• Inputs split between wool and meat outputs, on a farm income basis.
• Did not include soil carbon sequestration, but estimated effects
• Included the carbon fixed in the wool fibre (45% of the fibre is carbon)
• Allowed for known garment wear life, and care
Source: AWI Expert Advisory Panel on Wool LCAFebruary 2008
Opportunities to reduce footprint
• The greatest challenge for Australia appears to be enteric methane, and globally, using and heating water as part of garment care.
• There is scope to reduce livestock emissions:• Substantial differences have been shown to exist within breeds of
cattle in amount of emissions, independent of diet.• Also, Red Kangaroos don’t produce methane, yet are a ruminant.
• Australian industry is looking at methods for reduction in on-farm emissions. As part of a $100 m investment by the industry and the Australian Government, researchers are looking intensively at developing required genetic and management tools for growers.
Gaps in our knowledge
The study identified many gaps in our knowledge:
• Carbon sequestration in soil – how much of an impact or opportunity?
• Garment wear life – durable vs. rapid turnover and replacement?
• Post-purchase use and disposal. We suspect most wool is recycled via Op shops, then into cardings, into geotextiles and insulation etc.
• Japan has run very successful clothing recycling campaigns
Summary
• It is critical to know environmental footprint, for long-term future.
• LCAs are built on assumptions .... rubbish in, rubbish out
• For the global wool apparel industry:
• Biogenic methane is the major contributor to the carbon footprint, and the Australian industry is developing tools to reduce enteric emissions.
• Garment care during normal wear accounts for most water consumption, and much energy (heating water).
• More research is needed to address gaps in our knowledge, and to generate opportunities to reduce key elements of the footprint.
Innovation: What is it?
Innovation:
“Developing Products which Retailers would want to sell, and Consumers want to buy”
Fashion Wovenwear (cont.)
MERINOfresh™
Based on the shower suittechnology
Currently transferring the technology to, Sunshine China), Raymond's (India)
Retail interest is highE.g. Hugo Boss, Perry Ellis
Luxury (Natural)
Commodity
Impractical Wearable
Challenge: Brand Positioning
0
30
60
90
120
150
Jan-04
Jan-05
Jan-06
Jan-07
Jan-08
0
5
10
15
20
25
30
Jan-04
Jan-05
Jan-06
Jan-07
Jan-08
Cashmere
Mohair
Alpaca
18.0 um
A$/kg A$/kg
16.5 um & finer
Luxury Natural Fibre PricesMonthly
Source: AWEX, Wool Record, Seal International Data to June 2008. Wool prices are AWEX MPG.
Challenge: Delivering better handle in knitwear
Situation:
Handle is a critical issue at point of sale, and Australian Merino wool must be able justify its price.
CRC have established to develop suitable measurements, and work with knitters and retailers to implement these as a QA tool. Delivering better handle in knits
‘Softness to touch’ explains 50% of the variation in consumer perceptions of garment ‘exclusivity’, ‘high quality’ and ‘worth paying more for’
An objective assessment of knitwear handle and therefore value is important
Challenge: Delivering next to skin comfortSource: Sheep CRC
Delivering next to skin comfortSource: Sheep CRC
Wearer trialsSource: Sheep CRC
As the economy changes, as competition becomes more global, it’s no longer company vs. company but supply chain vs. supply chain. — Harold Sirkin, 1994.
Great firms will fight the war for dominance in the marketplace not against individual competitors in their field but fortified by alliances with wholesalers, manufacturers, and suppliers all along the supply chain. In essence, competitive dominance will be achieved by an entire supply chain, with battles fought supply chain versus supply chain. — Roger Blackman, 1997.
Product innovation is but one leg: supply chain integrity from farm to fashion is vital
Challenge: length of supply chain and knowledge transferSource: CSIRO/AWI
Challenge: technical know how and transfer
Traceability, Environmental and social compliance, Process integrity
Today
CSR; Green Woolmark; Fibre Origin
Next Three Years
Tomorrow
Intermediate product quality
Process Accreditation
Product Quality Certification
CSREngageme
nt
environment
employees & workers
society
supplier & producer
customer
company
AWI Corporate Social Responsibility (CSR)
Top Makers
Knitters/Weavers
Garment/Final Product Makers
Spinners
Retailers
US$ 400 US$ 5 US$ 5
The Eco- smart consumer notes that this “Onward” suit costs the same as other but $5 goes towards an environmental initiative
Consumer buys the product and Onward send US$ 5 to AWI, a non-profit R & D marketing company for wool in Australia
AWI distributes 100% of the collected funds to programs aimed at developing and improving the environmental management systems (EMS): the Bestprac group in pastoral areas and ALMS, a non-profit EMS certification provider
Bestprac and ALMS develop environmental and sustainability programs.
Underpinned by ISO 14001 certification and national level data on improved environmental conditions
Three winners.1. Consumer has a US$ 400 suit and has contributed to the improvement of the environment where the fibre for his garment came from. 2. The wool grower has funding and help to improve his natural surrounds and to improve and sustain his activity 3. The earth
$ustainability in other wool growing countries:expertise transfer to remote China 2006-09
Know how at work
ben.lyons@wool.com
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