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New Zealand falls out of love with sheep farming as lucrative pine forests spread
(www.theguardian.com)
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The only thing I can think of is that the labor costs must be so much higher for processing and manufacturing woolen products vs synthetic, i.e. wool price must be a relatively factor of the total cost - otherwise there's no explanation, although I don't know the ecological equation between wool and synthetics. You'd think wool would be better for the environment to produce and consume though.