Uruguayan wool for export

With 36 active markets, Uruguay is the 4th most important exporter of wool tops worldwide in terms of volume, while when considering data in dollars it is in 6th position. Measured in value, Uruguay is also the world's 4th largest exporter of washed wool, and 5th in terms of soiled wool.
Exports of wool and fabrics rank 17th in Uruguay's export matrix and accounted for 1.2% of total external sales in 2020.

The Uruguayan wool sector contributes to the diversification of exports and has in its combing industry an item that converges with current public policies.
In the last ten years and up to the year 2021, the Uruguayan wool industry's trade exchange measured in dollars has been in surplus.

The export markets for dirty and washed wool have been maintained with a strong presence of China. As an opportunity, the consumption in this market of luxury products -among which Merino wool is located- shows growth.

The impact of the Covid-19 pandemic on the Uruguayan wool industry

It is worth mentioning that the COVID-19 global pandemic had a negative impact on exports in 2020, and wool was no exception. In the year prior to the pandemic, wool was ranked 12th among exported products and represented 2% of total exports. Total exports from the wool sector in 2020 stood at US$ 98 million.
Exports of soiled and washed wool reached US$ 74 million in 2019 and grew by an average of 4% per year over the last 10 years. In 2020, in the midst of the sanitary crisis, exports of soiled and washed wool stood at US$ 41 million.
Anyway, in the cumulative January-April 2021 these exports totaled US$ 29 million, almost 72% of what was exported in the whole of 2020 showing a rapid recovery of the sector.
On the other hand, exports of tops were US$ 53 million in 2020, significantly lower than in previous years due to the effect of the pandemic. Looking at exports in 2019 -without pandemic effects-, total exports of tops stood at US$ 106 million and increased by an average of 1% per year over the last ten years.
The top sector accounted for 54% of total exports of the national wool chain in 2020. In January-April 2021, these exports accounted for 43% of total exports so far this year.

What is happening with the wool sector in the first quarter of 2021?

In the first four months of the year, 8,037 tons of wool were exported, 32% more than the 6,098 tons exported last year in the midst of a slump in demand as a result of the Covid-19 pandemic.
China was the main buyer, increasing its purchases by 22% to 3,138 tons, followed by Italy, which was the destination that increased the most with 1,117 tons -almost three times more than in the first four months of last year- and Germany with 683 tons.
Wool exports increased 14% in the first four months of 2021 compared to the first four months of 2020. Measured in volume, China consolidated its position as the main buyer of Uruguayan wool, with a share of almost 40% of the total.
If we measure exports in millions of dollars, the European Union tops the list with 37% of the total, followed by China with 33%.
Top sales, which in 2020 halved compared to 2019, in the first four months of the year increased compared to a year ago. The volume placed rose 18% to 3,379 tons, but dollar revenue from sales fell 3% to US$24 million due to a drop in price.

Radiography of the Uruguayan wool industry in April 2021

Sales of wool and fabrics stood at US$11 million in April 2021, almost three times the amount recorded in April 2020. This increase is mostly due to the increase in the volume exported to China, Italy, Germany and Bulgaria.
In particular, wool exports to China reached US$3 million and the volume exported more than doubled in the year-on-year comparison, particularly due to higher sales of uncarded and uncombed wool.
In the case of Italy, higher volumes of combed and uncombed wool exports made the difference in April 2021, standing at US$ 2 million - eight times higher than the amount recorded in April 2020.
For Germany, exports of uncombed wool were recorded at almost US$2 million. No exports to Bulgaria were recorded in April 2020, as they were in April of this year for US$1 million, with uncombed wool being the main export product.
In the first four months of 2021, US$ 53 million was exported, or 55% of exports in 2020, showing an encouraging outlook.