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Uruguay's wool exports to rebound in 2024
In 2024, Uruguay has recorded a 44% increase in wool exports, reaching 85 million dollars in revenue. The Chinese market has led the demand, while the sector adapts by exporting more unprocessed wool. Learn about the challenges and prospects of the new harvest
In 2024, the wool industry in Uruguay has registered remarkable growth, consolidating its relevance in the global market after several years of fluctuations. Exports from the sheep sector have increased by 44% by volume during the first seven months of the year, reaching 85 million in revenue. This growth has been driven by rising demand from China, which has accounted for the 47% of the total exported, with an emphasis on the export of dirty wool, whose volume grew by 124%. compared to 2023.
Market adaptation and challenges
Increase in exports at the expense of lower prices
The increase in exports is associated with a reduction in 25-35% on international prices, which has led Uruguayan exporters to prioritize higher volumes of less processed products, such as dirty and washed wool, which have lower prices in the market. This change has limited the sale of combed wool, a product with greater added value, but has also allowed Uruguay to maintain competitiveness in international markets.
China as an engine of growth
China has been the main destination for Uruguayan wool exports in 2024. Sales to the Asian giant almost doubled compared to 2023, highlighting the crucial role of this market in sustaining the growth of the sheep sector. However, dependence on a single market also entails risks, especially in the face of fluctuations in global demand and prices.
The new 2024/25 harvest and the global market
The beginning of the new wool harvest 2024/25 has generated positive expectations, but international prices remain a cause for concern. The economic situation in Europe and the volatility of markets, such as Australia, are factors that directly influence the prices of Uruguayan wool. Despite the challenges, the Uruguayan Wool Secretariat (SUL) has highlighted the importance of maintaining high quality standards to consolidate Uruguayâs position as a competitive supplier.
Conclusion
Uruguay has made significant progress in the wool industry during 2024, taking advantage of global demand and adapting to market conditions. Despite concerns about prices and the need for diversification, the sector has shown resilience, placing product quality as a fundamental pillar for the future. The key for the coming years will be to consolidate new market opportunities and continue investing in processes that increase the added value of exports.
FAQ
What is the main destination for Uruguayan wool exports?
China is the main market, absorbing 47% of the total exported in 2024, with an emphasis on the purchase of dirty wool.
Why is more dirty wool exported than combed wool?
Lower market prices have encouraged the export of less processed products to remain competitive.
What challenges does the Uruguayan wool market face?
The industry faces fluctuations in international prices, dependence on markets such as China, and the need to diversify its exports.
