The deal is estimated to be worth more than $250 million to fine wool growers over the next five years.
VF, which has the Icebreaker, North Face, Smartwool and Timberland brands among others, has committed to using only ZQ certified wool.
NZ Merino chief executive John Brakenridge said long-term contracts will be offered to ZQ farmers, including three-year contracts for Smartwool supplies and 10 years for Icebreaker.
Farmers can then breed sheep and practice their farm management with confidence and produce fit-for-purpose fibre.
“This sends a strong message to produce higher volumes of fine and sustainable wool and also encourages those considering a shift to finer microns,” he said.
The agreement comes at a time when farmers are under increased pressure to demonstrate to the world their environmental practices.
“This is a clear signal from the market that farmers will be recognised for their leadership in sustainability.”
Brakenridge said the aggregation of brands like Icebreaker into VF Corporation does not pose any extra risk for wool growers as the large corporation has strong, compatible values and commitments.
VF Corporation global procurement vice-president Tom Conneen said his company and NZM are working on a range of projects that will help inform future practices and verify sustainable Merino wool production.
“Globally, we want to power movements of sustainable and active lifestyles for the betterment of people and our planet.”
VF has established and funded a scholarship in wool handling to begin next year.
Managed by Elite Shearing, the 12-month shearing and wool handling cadetship will be available for 10 trainees participating in the Shearing Contractors Association training programme.
