Ail.DIVISION OF BUSINESS, LAW & INFORMATION SCIENCES
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Signature of student: _Turker Sayin_****_ Date: 30*th* Sep 2009
Date of submission __30*th* Sep 2009__
The research will present the facts and figures about the demand for woolen garments in Australia as well as the main factors of production such as land, labor, and capital accompanied by the factory location and the potential risks for the woolen industry and how they can be managed.
Demand for woolen garments
Australia produces over 50% of the world’s Merino wool, or approximately 645,000 tons, each year (Department of Communications, Information Technology and the Art, 2006). The wool industry embraces 7% to 10% of the gross value of agricultural production in Australia, earning $3 to $4 billion in export income per year (Department of Communications, Information Technology and the Art, 2006).
As Australia being the world’s largest producer and exporter of raw wool, the country needs to be in position to meet customers’ increased demand for woolen garments since statistics shows that the buying power in China and India will double in the next decade which represents and additional US$16trillion in personal income (Islam, 2004)
China is Australia’s third largest trading partner, third largest export market and third largest source of imports (A$14.2bn-11% of total imports). China imported 86% of Australian wool, which compares with 54% for all other countries in the period of 2006 respectively (Tastle, Wierman, 2006).
A growing trend is also greater consumer demand for clothing that is produced from fibre to finished product, involving the environmentally sustainable production, though...