--Apollonius Rhodius: The Argonautica

As far back as the mid-3^rd century BCE, when Apollonius of Rhodes gave us the classic tale of Jason and the Argonauts, the story of the golden fleece had already been around for a number of centuries. It would have been known to Homer some five centuries previously and was known even before that.

If you think that's ancient history, then think again: Wool and sheep (albeit not now the winged ram Chrysomallos (Χρυσόμαλλος) had been around for many thousands of years before that. In fact, after dogs, sheep are probably the oldest domesticated animal!

Does the story of the golden fleece still hold sway for today's investors?

A Very Short History of Wool

If the domestication of sheep goes back as far as 10,000 years, an international trade in wool, by Sumerian merchants in southern Mesopotamia, is recorded as far back as 2500 BCE. And during the period 3000-1000 BCE, the great empires of the day - Greek, Roman and Persian - were all distributing sheep and wool throughout their empires and, in particular, Europe.

Wool remained the primary fiber in Europe until the Middle Ages, when the introduction of linen undergarments challenged that primacy. With wool came enormous wealth, particularly through raw wool exports. In the 12^th century, for example, wool was England's greatest asset, and indeed, wool production hits its peak in that country in the 13^th century.

In Spain, the wool trade helped finance the expeditions both of Columbus and the Conquistadors. Constituting their fiefdom as it did, the Spanish royal family and its nobility kept tight control of the means of production, i.e., the sheep themselves, especially when it came to those producing the finest-quality wool.

Having exercised close control for many hundreds of years over its flocks (not least through the use of the death penalty for any illegal exports of sheep), it was only in the 18^th century that Spanish Merino sheep, famed still for the quality of their wool, started to be exported from Spain, not least as gifts of the Spanish king. The rulers of England, France and Saxony all received their Merinos in this way. Now Merino flocks are to be found all round the world.

Until the late 18^th century, when the use of cotton in clothing started to become increasingly prevalent, wool was the most commonly consumed fiber. Since the turn of the last century, however, which saw the introduction of man-made fibers, wool's position in the global fiber market has been on the slide.

Global Fiber Production 1970-2006 (000 kg)

(a) Production of a seasonal basis (i.e., 2006 = 2005/6)

(b) Excluding olefin production

Sources: International Wool Textile Organisation (IWTO) (from The Woolmark Company, FAO of the United Nations, International Cotton Advisory Committee, Fiber Economic Bureau and International Silk Association)

Wool now represents only about 1.9% of world fiber production.

World Fiber Production: 2006 (% share)

Sources: International Wool Textile Organisation (IWTO) (from The Woolmark Company, FAO of the United Nations, International Cotton Advisory Committee, Fiber Economic Bureau and International Silk Association)

However, despite the growth in the production both of synthetics and cotton, the wool industry remains an important one, especially in countries such as Australia, China and New Zealand. The International Wool Textile Organisation (IWTO) quotes a figure of $80 billion yearly (source: Woolmark) as the total retail value of sales of wool products.

Why Use Wool?

Apart from being the quintessentially natural fiber, wool, amongst its most important characteristics, is:

• Absorbent: It keeps you cool in hot climates and warm in cold climates - wool sheds water.
• Durable and Resilient: Since it is so elastic, it is remarkably resistant to tearing and, as a multipart fiber, it resists wear.
• Flame Resistant: Wool is self-extinguishing, it does not support combustion.
• Versatile: Its uses range from clothing to carpets.

 Prev1234Next