The growth of China as a major textile producer and Europe's economic woes have caused a significant swing in the profile of New Zealand wool exports.
European customers were taking less wool, with exports down 14.5 per cent compared to last season, Wool Exporters president John Dawson says.
China continues to grow and has taken 15.4 per cent more than at the same time last year.
The European Union now accounts for 31 per cent of New Zealand's markets, whereas China has leapt to a 47 per cent share.
"If you said two years ago that we were at 47 per cent, people would be surprised at that figure but I think it's a trend that is in place and I would be surprised to see it go too much higher quickly," he says.
It also confirmed a trend of carpet-making machinery and manufacturing leaving Europe for China because of the lower production costs in Asia.
Overall total exports to the end of January 2012 were down by 8 per cent.
Better wool prices meant the export value was up by 28 per cent in the same period.
He said there has been no great swing in greasy wool exports to China. So far this year, China has taken 62 per cent of its wool greasy, which is 1 per cent less than the proportion at the same period last season.
Wool exported to Australia is also down a whopping 75 per cent. This is a real concern, Mr Dawson says.
"We have always had a very strong market for good carpet wools in both Australia and New Zealand but this has changed very rapidly in the last year or two."
The impact of that has been very marked and the wool carpet industries in New Zealand and Australia are really struggling.
The drop in exports to Australia reflects this and it has to be a major concern for the industry in general and wool growers in particular, he says.
Mr Dawson believes it is the result of the wool story not being communicated anymore. There are some very cheap man-made fibres out there and wool finds it hard to compete, he says.
"The oil giants have been pushing hard into the carpet market and solution-dyed nylon carpets have been heavily promoted around the world."
Australasia used to account for 30 per cent of New Zealand's wool consumption. That figure today is a lot less, he says.
"It's quite alarming and quite sad. A lot of it goes back to the lack of promotion of wool."
Industry groups are trying to reverse this trend although their focus was more in Europe, he says.
"People are saying that some of the resources from that should be coming down this way."
Mr Dawson says that wool is currently in steady demand but the high exchange rate against our major trading currencies, USD, GBP and Euro, is making our wool very expensive for our customers and is undermining New Zealand's ability to capitalise on the renewed demand.
