A NEW joint venture between Dawson International and Elders Australia

to launch a range of fashion knitwear was announced yesterday.

The knitwear, to be ready next year, will be sold under under Dawson's

Braemar Country Clothing label. It will be designed for the Western

European market but made from Australian wool.

Elders wool general manager Chris Mitchell said the alliance would

help his company's transition from an Australia-based wool-broking house

to an international wool marketing company.

He pointed out that Elders markets almost 1.2 million bales of

Australia's annual wool clip of four million bales, collecting wool from

growers and selling it for them as broker. Under the new project it will

become a buyer.

Mr Mitchell said Elders had been seeking new opportunities and markets

for wool since the collapse of Australia's wool reserve price in January

1991. That had heralded more than three years of depressed prices, with

the market just starting to recover.

Dawson brand director David Stuart-Monteith said that for some time

Braemar had been seeking a way to differentiate its range from others in

the highly competitive European market.

In an associated move, Elders will supply wool that has been through

its quality assurance scheme to a Dawson spinning subsidiary, Laidlaw

and Fairgrieve. The target is to supply 20,000 bales by the fifth year.

About 20% of the wool manufactured into yarn would be taken up by

Braemar.