China's wool tycoon in rescue act Down Under

When biting winter winds whip through the paddocks of the 170-year-old Lal Lal sheep farm in Australia's central Victoria this year, a Chinese wool tycoon will be trying to help revive an ailing industry. He's also hoping to overturn skepticism toward foreign investors.


Wen Qingnan, who bought Lal Lal in 2014, plans to build shelters for newborn lambs inside an unused hay shed to help boost survival rates by as much as 40 percent. He's also expanded the flock. Such measures may help restore wool profits in a country that is the world's top exporter. Over the past two decades, farmers were hit hard by cheaper alternative fibers and saw output shrink.


But not everyone welcomes infusions of foreign cash. A surge in Chinese investments in agriculture is fueling concern about lost local control of prized farm land in Australia, a major shipper of everything from beef to wheat. It's a theme gaining importance among rural voters before a national election scheduled for July. Wen, who runs the largest processor of raw wool in China, is convinced Australians will come around.


"The public attitude toward foreign agriculture investments will change once they see more and more investors are making contributions to the local economy and communities," said Wen, president of Jiangsu province-based Tianyu Wool Industry (Zhangjiagang Free Trade Zone) Co. "I feel confident that exchange and sharing of ideas and techniques will be beneficial to everyone."


Australia has led the world in fine wool output almost since high quality merino flocks were established there in the 1800s. But exports have declined 44 percent since 1981 and are forecast to slip even further this year, partly because wool is more expensive to produce than cotton or synthetic fibers. Many farmers are losing money.


By scanning all ewes to check for multiple pregnancies and by providing additional feed and shelter, Wen aims to improve lamb mortality rates. In Australia, an estimated 10 million die after birth each year, animals that could profitably produce more wool. At Lal Lal, Wen's target is to increase survival rates 30 percent to 40 percent. He also expanded his flock to about 12,000 sheep after purchasing 1,600 animals since October.


The article transsshipment from China Daily