World Silk Industry–Current Situation and Days Ahe

Mr. Kosho Matsunaga

Managing director of Matsumura Co., Ltd.

I am Kosho Matsunaga from Matsumura Company located in Kyoto Japan. I am delighted to be here today in ISU congress taking place in Como, the center of silk industry. I am also honored for this opportunity to make a speech at this summit. I have a regard for ISU for continued effort on developing world silk industry.

Please let me explain our company. We are an old silk trading company established in 1862. Our company sales raw silk and thrown silk yarn to Japanese fabric makers and we have the biggest share in Japanese market. We started twisting factory from 1997 and we have the biggest twisting and weaving factory in Vietnam now. Our company sales these raw silk, thrown silk and silk fabric to Asia (For example, Japan Korea, India, Pakistan) and Europe(For example, Italy and other countries).

As you may know, the world demand for silk material is increasing year by year. Especially, it is increasing in China, India and Islamic countries such as Pakistan following their growth of economy.

Meanwhile, almost all raw silk is produced in China. However, other countries such as India, Uzbekistan, Vietnam are increasing their production amount in recent years.

By the way, toady we are limited in natural resources and we need to use materials which are harmless for the environment. Raw silk is very environmentally friendly material because it is not made from earth resource. Raw silk is made from protein so it is harmless for human as well. Recently, "Silk Plastic" is very remarkable because they can replace "Normal Plastic" made from oil. Silk plastic is biodegradable so it turns into soil by bacteria and return to nature at the end.

Silk material also can be used for health food, supplement and cosmetic. I believe now is the time we spread advantages of silk to the world more. As the above, world silk demand is increasing year by year and I think it will continue in the future.

However, price of raw silk is not stable in these years. These rapidly changing price will decrease demands. If the price become going down, it will effect badly to silk industry including sericulture farmers, reeling factories and fabric makers. I also concern production of high grade raw silk is decreasing year by year. I think stable price, high quality and good supply chain is very important for world silk industry.

In this regard it is good news production of raw silk is expanding in many countries and its supply is beginning to be stable. I believe in the near future, round-year mass production of cocoons by artificial diet will start. I can also imagine reeling factories adopting robots to their factories. This will lead to stable price and quality of raw silk because artificial diet will not be effected by the weather. Moreover, robots will sort good and bad cocoons which will make adjustment of production easier and lead to stable price.

I think one suggestion is China taking lead in organizing OSEC (Organization of Silk Exporting Countries)as an international organization similar to OPEC(Organization of the Petroleum Exporting Countries)to stabilize raw silk price. If the price become stable and supply chain become stronger and raw silk quality improves, I am sure our silk market will expand.

Lastly, I hope for great development of silk industry and wish everyone a continued success and a good health.

Thank you.