Image 7.1

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Private dealers assembling wool in Western China. Private dealers have replaced State procurement agencies as the dominant players in domestic wool marketing. They operate in a loose hierarchy extending from grassroots purchasers to large eastern dealers. In between, intermediate-level dealers (pictured) are responsible for assembling wool, packing and transport and some crude grading. The fragmented nature of private dealers and lack of price-grade differentials embodied in the system may be suitable for low grade wool but has contributed to the demise of the fine-wool sector.