The trade war simmering away for months between China and Australia has woolgrowers nervous that wool is going to be the next export commodity caught in the crossfire.
And it's no wonder, with two-thirds of all Australian wool production exported to China.
The important relationship with China was formed in the early 1990s and since then they have been Australia's largest market for wool exports accounting for 77.4 per cent in 2019-20, totalling $1.9 billion.
According to Australian Wool Innovation CEO Stuart McCullough, although the current situation remains extremely fragile, he is quietly confident the industry will continue to be supported.
And industry to industry relationships are, and will remain, their number one focus.
"We can have little effect on the government to government relationships, but where we can have an effect is on the industry to industry relationships," Mr McCullough said.
"I have instructed the Shanghai office to actively engage with the big buyers of our product, on a more regular basis.
"I recently sat on a call with one of the country's largest buyers of wool, Qingnan Wen, owner and president of Tianyu Wool.
"I am joining in on those calls myself, which is something I have typically left to the offices, the Shanghai office in particular.
"It is such a delicate time at the moment that warrants a bit more personal engagement."
The latest commodity report compiled by ANZ has highlighted the concerns of the reliance of Australian wool on China, however, these concerns are partly tempered by the fact that Australia is the only possible supplier of the wool quality and volumes appropriate for the Chinese wool processing industry.
And according to Mr McCullough, the relationship between the two countries is mutual, and he has strong but subtle confidence in China continuing their support to Australian wool.
"The fact that they can't acquire wool in large enough quantities from anywhere else, that it is not an immediately consumable product and it has a long supply chain value-add all points in our favour," Mr McCullough said.
"When you can't get it from somewhere else, when it's not immediately consumable and when it happens to have a very long supply chain value- add I am hopeful we are down the list when it comes to putting tariff barriers or non-tariff barriers on wool and effect the sale of the product.
"When a bottle of wine is immediately consumed, there is no supply chain value add.
"But when wool goes to China, the supply chain value-add that is undertaken from greasy wool to garments is a very long one with 16 steps.
"There are many people vested and invested in those steps that make quite a lot of money in terms of value-add."
But he stressed AWI is actively monitoring the situation, heavily engaged with the Department of Agriculture, The Department of Foreign Affairs and Trade and the Australian embassy in China.
"China is our perfect partner, there will be no other China," Mr McCullough said.
"It has the population, the affluence, and the climate to suit consumption of wool.
"And right at this moment they are the only country coming out of this pandemic with a V-curve - straight down and straight back up, commerce has returned."
Nutrien north-east wool manager, David Hart said a dark cloud hangs over the industry while ever the trade dispute continues.
"Hopefully common sense will prevail and the issues will be resolved," Mr Hart said.
"Because at the moment, no one wins."
