China dominates global sheep flock, faces wool quality challenges

China boasts of the largest sheep flock and wool clip worldwide, with sheep concentrated in provinces bordering Mongolia. Since 2018, China's sheep flock has grown 20 per cent to 193 million in 2023, while goat numbers fell 4 per cent to 129 million. In contrast, Mongolia's livestock suffered a 20 per cent drop in sheep and 16 per cent in goats due to recurring harsh winters, or dzuds.

China's wool production, slightly larger than Australia's in greasy terms, shows a shift in quality. The finer wool (25 microns and below) has fallen 41 per cent over the last decade, dropping from 31-33 per cent of the clip to 20 per cent, despite rising sheep numbers. Meanwhile, coarser crossbred wool (25-35 microns) grew 43 per cent.

The Chinese wool clip, now 70 per cent the size of Australia's, shows only 7-10 per cent of its fine wool matching Australian merino quality. However, China's crossbred wool production outpaces Australia by 1.5 times in clean terms, though quality remains indeterminate. These trends highlight China's dominance however it also challenges in premium wool production.