image image

Scams and swindles

Chinese buyers fleeced in Australian wool scam

Bales of high-quality wool switched for inferior product, risking damage to reputation of export industry

PUBLISHED : Wednesday, 04 October, 2017, 4:20pm
UPDATED : Wednesday, 04 October, 2017, 4:24pm

The theft of high-end Australian wool destined for China is under investigation, authorities said on Wednesday, as customers end up with lower-grade produce in a scam threatening the industry’s reputation.

Australia is the world’s number one producer of premium-quality fine wool and the largest producer of all wools by value and volume, with China the dominant source of global demand.

Police in the state of Victoria said there had been a number of wool-tampering incidents dating back to May, with complaints of bales in Melbourne being switched for an inferior product.

Why is Australia talking tough about major trade partner China?

Detective Inspector Jamie Templeton said the racket was being treated “extremely” seriously.

“This is not only due to the total value of the wool stolen but also the potential damage it poses to the Australian export industry,” he said, without saying how much had been stolen.

“These thefts are incredibly damaging to the livelihood and reputations of the brokers who export this product.”

Daigou down under: the Chinese shopping trend taking Australia by storm (and a public listing to boot)

National Council of Wool Selling Brokers executive director Chris Wilcox said Australia said 75 per cent of its wool to China, and although the thefts represent only a tiny portion, they were a worry.

“Anything that affects the perception of the quality of Australian wool in China is a concern ... It is a concern that the whole of the Australian industry has had for many years,” he said.

Wilcox said strong trade ties between the two countries meant the issue should be dealt with strongly but would be overcome.

“China values the quality of Australian wool very highly,” he said.