# Wool: Extraction

Fine Merino versus coarse crossbred: where each grows

Source page: https://www.materialinsights.org/commodities/wool/extraction/

What this tab covers How it is mined, drilled or grown, and processed into a tradeable form: the main methods compared, their unit economics, by-products, and the companies that do this work globally and in India.

Wool is grown, not mined: most sheep are shorn once a year. Fine Merino wool for apparel comes mostly from dry pastures in Australia, South Africa and South America; coarser crossbred wool from New Zealand and the United Kingdom goes largely into carpets. Greasy fleece is classed by fibre diameter, length and strength. Scouring removes grease, dirt and vegetable matter, and the grease yields lanolin. Clean wool is carded, combed into tops and spun. Meat and wool are joint products of the same flock.

Wool is a by-product of sheep farming in two quite different systems. Australia, South Africa, Uruguay and Argentina run Merino flocks on large dry pastures mainly for fine apparel wool. New Zealand, the UK and much of Europe run crossbred sheep mainly for meat, with coarser wool for carpets and knitwear. China, India, Central Asia and the Middle East have large pastoral flocks producing mostly coarse wool. After shearing, wool must be scoured, combed and spun, and most of that processing now takes place in China. Because supply depends on flock sizes, which react to drought and to meat prices as well as wool prices, output adjusts slowly.

#### Methods compared

| Method | Share of supply | Typical scale | Recovery / efficiency | By-products | Unit cost |
|---|---|---|---|---|---|
| **Merino flocks on extensive pastures, Australia (also South Africa, Uruguay, Argentina)** | Australia 16.6% of world greasy wool in 2024 and 65.9% of world greasy wool export value (FAOSTAT; UN Comtrade) | Australia 281 kt greasy in 2024, down from 1,102 kt in 1990 (FAOSTAT) | n/a | sheep meat, lanolin from scouring | n/a |
| **Crossbred meat-sheep flocks, New Zealand and the UK** | New Zealand 7.4% and UK 4.0% of world greasy wool in 2024 (FAOSTAT) | New Zealand 125 kt greasy in 2024 (FAOSTAT) | n/a | lamb and mutton | n/a |
| **Pastoral flocks, China, India and Central Asia** | China 21.5% of world greasy wool in 2024 (FAOSTAT); India 34.6 million kg in 2024-25 (DAHD via Dataful) | China 364 kt greasy (FAOSTAT 2024); India's output fell from 50.5 million kg (2002-03) to 34.6 million kg (2024-25), with Rajasthan 47.9% and Jammu and Kashmir 22.9% (DAHD via Dataful) | n/a | meat, milk, skins | n/a |
| **Processing: scouring, combing (topmaking) and spinning** | China 73.4%, India 7.3%, Italy 4.8% and Czechia 3.2% of world greasy wool import value in 2024 (UN Comtrade) | China imported 321 kt and India 102 kt of greasy wool in 2024 (UN Comtrade) | n/a | lanolin | n/a |

#### How each method works
**Merino flocks on extensive pastures, Australia (also South Africa, Uruguay, Argentina)**

Large flocks graze dry rangeland and improved pasture. Wool is shorn, classed and sold through brokers at auction. Drought and the relative profit of meat and grain decide flock size. Australia's clip has fallen sharply since the 1990 peak as farmers shifted to crops and meat sheep.

Finest, most valuable wool, but supply is shrinking and the clip fell again in 2025-26 (AWTA test volumes down 10.4% in Jul-Nov 2025, AWI).
 FAOSTAT 1990-2024; UN Comtrade 2024; AWI Market Intelligence, Dec 2025 **Crossbred meat-sheep flocks, New Zealand and the UK**

Sheep are bred mainly for lamb; their coarser, stronger wool goes to carpets, upholstery and knitwear. Low wool prices mean the clip often barely covers shearing costs.

Large volumes of durable wool, but carpets have lost ground to synthetics.
 FAOSTAT 2024 **Pastoral flocks, China, India and Central Asia**

Herders and smallholders keep sheep on common grazing, often migrating seasonally. Most Indian wool is coarse carpet grade from breeds such as Chokla and Marwari in Rajasthan. India's output has fallen as sheep are kept for meat.

Large flocks and low cost, but mostly coarse wool that cannot replace Merino for apparel.
 FAOSTAT 2024; DAHD Integrated Sample Survey via Dataful **Processing: scouring, combing (topmaking) and spinning**

Greasy wool is washed in hot water and detergent to recover lanolin, carded, then combed into tops for worsted spinning. China imports most of the world's greasy wool for this. India imports Australian and New Zealand wool for its worsted and carpet mills.

Adds most of the value, but scouring needs water treatment and is concentrated in China.
 UN Comtrade HS 5101, 2024 Unit economics are indicative ranges from the sources named; costs vary widely by deposit, region and year.

#### Who does it: global

| Company | Country | Activity | Volume | Year | Source |
|---|---|---|---|---|---|
| **Australian Wool Innovation (Woolmark)** not a trader; no volume | Australia | grower-funded research and marketing body; publishes market intelligence | not published | n/a |  |
| **Techwool Trading** private company; volume not published | Australia | wool exporter and auction buyer | not published | n/a |  |
| **Tianyu Wool** volume not published | China | topmaker and leading buyer at Australian auctions | not published | n/a |  |
| **Lempriere** private company; volume not published | Australia | wool merchant and processor | not published | n/a |  |
| **Segard Masurel** private company; volume not published | France | wool merchant and topmaker | not published | n/a |  |
| **Marzotto Group** volume not published | Italy | wool fabric weaver (Biella and Veneto) | not published | n/a |  |

#### Who does it: India

| Company | Country | Activity | Volume | Year | Source |
|---|---|---|---|---|---|
| **Central Wool Development Board** no trading volume | India | Ministry of Textiles body (Jodhpur) running wool development and marketing schemes | not published | n/a |  |
| **Raymond** wool volume not available | India | worsted suiting fabric maker | not published | n/a |  |
| **Panipat recycled-wool cluster** volume not published | India | hundreds of small mills spinning shoddy yarn for blankets | not published | n/a |  |

India produced 34.6 million kg of mostly coarse wool in 2024-25, down from 50.5 million kg in 2002-03 (DAHD via Dataful), and imported 102 kt of greasy wool worth $202 million in 2024, 7.3% of world import value (UN Comtrade). Apparel mills rely on imported Merino; carpet makers in Bhadohi use domestic and New Zealand wool.

## Other sections

- [Summary](https://www.materialinsights.org/commodities/wool/index.md)
- [Overview](https://www.materialinsights.org/commodities/wool/overview/index.md)
- [Correlation](https://www.materialinsights.org/commodities/wool/correlation/index.md)
- [Production](https://www.materialinsights.org/commodities/wool/production/index.md)
- [Stocks](https://www.materialinsights.org/commodities/wool/stocks/index.md)
- [Cycles](https://www.materialinsights.org/commodities/wool/cycles/index.md)
- [Trading](https://www.materialinsights.org/commodities/wool/trading/index.md)
- [Movement](https://www.materialinsights.org/commodities/wool/movement/index.md)
- [Criticality](https://www.materialinsights.org/commodities/wool/criticality/index.md)
- [Characteristics](https://www.materialinsights.org/commodities/wool/characteristics/index.md)
- [Emissions](https://www.materialinsights.org/commodities/wool/emissions/index.md)
- [Relationships](https://www.materialinsights.org/commodities/wool/links/index.md)