According to figures released by the Australian Bureau of Statistics (ABS), Australian exports of sheep and lambskins declined 11% to 4 million skins during January and February 2003, compared with the year earlier.

Exports of sheepskins rose 1% in quantity and 16% in value to $16 million, while exports of lambskins declined 18% to 2.5 million skins and fell 14% in value to $26.1 million. Raw skin prices, however, remained strong.

The ABS cites subdued demands from the major markets of China, Turkey and New Zealand for the decline and says the Chinese market is being affected by a weakened demand for products in the US. According to the ABS, however, the high cost of wool has allowed Chinese tanners to supplement their buying prices through cash obtained from sales for fellmongered and clipped wool.

Despite reduced global demand for sheep and lambskins and the appreciating dollar, the ABS predicts prices will remain high over the next three months due to reduced supplies of skins and the high cost of wool.

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