Trader cottons on to WA wool

Global food company Olam International is aiming to boost its share of the WA wool market.

The Singapore-based company, which purchased Queensland Cotton in 2007 and expanded into wool in Australia a year later, was the fourth biggest wool buyer nationally, and the second largest buyer of fleece bales in 2010-11.

In WA last season the wool and cotton trader was also the fourth biggest player, buying 29,508 bales. Now Queensland Cotton has signalled its intention to increase its slice of the WA market with the relocation of senior buyer Steve Noa to WA.

Mr Noa will replace the role of past contractors used in WA with an emphasis on Queensland Cotton's growth in the wool business.

"Queensland Cotton began trading in wool in 2008 with immediate impact and has had an annual growth rate of 10 per cent in this sector," he said.

"We are very quality conscience and trade wool in China, India, Japan, Taiwan, Europe and the US. WA is going to be a very important market in our long-term growth strategy and I look forward to playing a part in reinvigorating the State's wool industry."

Mr Noa, who has 18 years of wool trading experience, including 10 years with Lempriere, said WA produced excellent wool for those markets.

"Although WA has had some challenging years recently, Queensland Cotton will be right behind the rebuild of the State's flock with a goal of rewarding growers for quality."

Last week at the Wool Selling Centre in Bibra Lake, Mr Noa bought 10.9 per cent of the WA auction wool proceeds, or 614 bales.

He paid a top of 1300c/kg greasy for four bales of 15.9 micron which were offered by Boyup Brook woolgrower Greg Cochran, through Primaries.

The other major wool buyer last week was Canadian-based global agri-business company Viterra, which has remained the top wool buyer nationally since its introduction into Australia after combining with ABB Grain in 2009.

This week Viterra announced a new alliance with Wool Agency where both companies will share the same wool handling facility at the latter's existing Beaconsfield site.

Viterra executive manager Peter Davey said the alliance would bring about increased storage capacity and greater efficiencies.

"Both companies will continue to operate their existing business structures as their respective clients are accustomed to," Mr Davey said.

Wool Agency director Scott Shenton said the alliance will further enhance the growth of both companies.