Strong wool prices are creeping up as action in the industry begins to rebuild confidence.
The first wool sale of the 2021-22 season opened strongly following the same positive trend from the end of season sale, with crossbred wool lifting 5% across the board.
PGG Wrightson South Island auction manager Dave Burridge says the standout types for the season opener were the early pre-lamb shorn styles from all breeds typically showing good colour, style and good tensile length.
This was followed by an excellent offering of pre-lamb shorn wools last week that saw the market continue to strengthen for all breeds.
“The well-prepared clips were clearly sought-after by buyers procuring premium styles for processing into Asian and European markets,” Burridge said.
Further lifts in value of 4-5% across the board were realised with good style crossbred fleece selling at $3.35/kg, average style at $3.00 and poorer $2.50.
Good style crossbred, second shear of 75-100mm length fetched $3.15, 50-100mm $3.00 and 50-75mm $2.95.
Federated Farmers meat and wool chair William Beetham says there are some positive developments happening on strong wool collaboration, innovation and consumer-focus fronts signalling an exciting new era for New Zealand’s wool industry.
“We’re really pleased to see industry players work together to end fragmentation and concentrate on driving extra value from the superior attributes we all know that strong wool entails,” Beetham said.
He highlighted recent initiatives, including a proposed merger of two main farmer-owned co-operatives – Wools of NZ incorporating 730 farmers and Primary Wool Co-operative, 1400 farmers, with the aim of an integrated supply chain.
The Wool Research Organisation of NZ (WRONZ) has announced a world-class research initiative with the Ministry of Business, Innovation and Employment (MBIE) and development of unique wool particles, powders and pigments, with global export potential.
A joined-up farm assurance programme backed by 23 wool companies is under way; the aim being to build systems to ensure a standard of supply and traceability that meets market expectations.
“We’re moving beyond selling our clip as a raw product as we look for high-value, branded consumer products that capitalise on strong wool’s natural, sustainable credentials,” he said.
These initiatives come on the back of companies such as Cavalier-Bremworth, Big Save Furniture and Merino NZ championing strong wool and the push into US markets, with branded wool product opportunities by the Strong Wool Action Group (SWAG).
“I’m really buoyed by this determination to lift our game, tell the exceptional story of our wool’s provenance, and get better returns for NZ farmers,” he said.
“There’s a long road ahead to get to where everyone wants the strong wool industry to be and part of that is a commitment by farmers to meet assurance standards.
“Farmers may also need to further invest in their industry, but when we get there the potential rewards are huge.”
Meanwhile, finding entrepreneurs and companies either in NZ or offshore to spearhead branded product campaigns in the US is ongoing in SWAG’s action plan to get NZ’s strong wool industry match-fit to take advantage of new market-led opportunities.
As SWAG passes the halfway point of its works, SWAG chief executive Andy Caughey says it is becoming clear that the strong wool industry will need to develop approaches that can evolve over time.
“This means meeting the needs of the sector today, but also adapting to what may be required in the future in response to consumer demand growth,” Caughey said.
“This will include drawing on programmes and services within the broader food and fibre sector that the strong wool industry can plug in to.”
In a major milestone for the industry, Big Save Furniture has committed to rewarding farmers their fair share, paying a premium of $4.50 a kilogram for good quality strong wool.
With government funding for SWAG finishing at the end of December, Caughey says the group’s vital role to identify a structure that will take the industry forward remains key.
“The shape of that entity, or entities, will be influenced by efforts to bolster onshore activities required in the development of strong wool fibres to pursue and underpin the opportunities identified,” he said.
