CHINESE WOOL AUCTIONS - FAILED AGRIBUSINESS REFORM OR FUTURE MARKETING CHANNEL

The spectacular though short-lived operation of China's wool auctions graphically illustrates problems in reforming China's agribusiness sec tor. A selective coverage of product type and participants, a highly c ontrived process of price discovery, and an urgent need for parallel r eform in related areas all led to the demise of the auctions and are a barrier to their re-emergence as a viable wool marketing channel. Des pite the challenges facing wool auctions, this paper argues that they still have much to offer the marketing of wool in China.