TWENTY years ago when the USSR fractured so did its status as one of the largest markets for Australian wool.
Now Russia is wakening from its slumber and reaffirming itself as an emerging market for Australian wool.
With the economy in China slowing down, Australian Wool Innovation (AWI) has turned its focus towards Russia in the hope of securing it as a possible new market.
AWI general manager of product development and commercialisation Jimmy Jackson said during the Soviet days, Russia was buying one in every three bales of Australian wool sold, but that stopped when the USSR collapsed.
"In terms of a market for Australian wool it's been dead for the last 15 to 17 years and it's only just starting to move again," he said.
"These days Russia is very different, it's free market and a capitalist society.
"If you go to any of the major fashion capitals around the world like London or Milan they're full of Russians shopping and spending money."
When searching for new potential markets for Australian wool, AWI has highlighted three major categories that markets need to fit.
These are population, wealth and climate and Mr Jackson believes Russia fits all three.
"Seventy one out of the top 100 of the world's billionaires come from Moscow, so it gives you some idea of the wealth floating around over there," he said.
"They also have a huge middle class that is growing, with a large disposable income and they love to spend money.
"Russia has a large population with roughly 150 million people and a further 250 million surrounding it.
"The weather in Moscow is extremely conducive to buying woollen products because for seven months of the year it's less than 10 degrees."
Although things in Russia have changed economically, Mr Jackson believes it is still too hard to predict the volumes of wool the country could take.
"Unfortunately most of the manufacturers disappeared after the collapse of Soviet Russia but there are still some significant ones there," he said.
"The remaining manufacturers tend to be very well educated with lots of experience and have lots of skill when it comes to manufacturing.
"Many of the older technicians remember using Australian wool and dream of using it again.
"We need to teach them about the added value of using Australian wool so they can see it's a more premium product.
"We need them to tell the story of Australian wool and teach the Russian consumer it's the best of the best."
Although Russia has changed in the last 20 years, the Australian wool industry has as well and Mr Jackson believes there is a need to inform Russia of that.
"You are no longer able to buy yarns, tops and fabrics direct from Australia because lots of our processing has moved offshore," he said.
"It's a matter of educating companies and manufacturers so they get to know Australian wool again and learn who the exporters are.
"We also need to inform consumers that Australian wool is more technologically advanced and there is no longer an issue with washability, shrinkage or colour bleeding.
"Russian retailers weren't stocking wool because they thought you can't wash it, so there is a real need for education."
Although Russia may have ticked all the boxes as a potential market there are still some challenges to overcome and Mr Jackson said things like language and cultural barriers still posed a problem.
While many farmers argue that there is too much of a reliance on China as a market for Australian wool, Mr Jackson didn't agree.
"Other than Russia, AWI is looking at opportunities for Australian wool in Vietnam as well as Mexico," he said.
"Vietnam poses an interesting opportunity not for consumption but for manufacturing.
"We are already putting together a program there to develop wool products and to teach them how to knit and spin wool.
"Mexico also holds a great opportunity because its part of the North American Free Trade Agreement (NAFTA) so has free trade with the US.
"It's impossible to find the new China, however if we can take some of the reliance off China as a manufacturer and in consumption and look for other opportunities at the same time, it's a way forward and will be a good start."
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