The funding, from the Ministry for Primary Industries (MPI) Sustainable Foods and Fibres Fund (SFFF), along with $750,000 contributed by industry, will propel SWAG to deliver its vision as the catalyst for change in the sector, group chief executive Andy Caughey says.
“It demonstrates industry and government support in the work we are doing, resulting in a total of $3.5m to invest in the future of a strong wool sector for New Zealand,” Caughey said.
Independent investment analyst and corporate finance practitioner Michael O’Connor has been appointed to the group to advise on commercialisation strategies to support businesses to accelerate ambitions in strong wool products and markets.
O’Connor has a broad knowledge from agribusiness to luxury goods and in building robust cases for investment.
In the meantime, San Francisco-based design thinking company IDEO has completed its research, providing compelling reasons to invest in the US market and revealing consumer insights that surfaced because of the pandemic.
Caughey says it is critically important to get the roll-out of the IDEO report “dead right”.
“This is an integral part of the work to the overall strategy of SWAG, and we are very conscious of who, and how, we target our approach,” he said.
“We want to engage with industry, but execute strategy in the best way possible to ensure we are successful in establishing enduring industry structures for the future.”
IDEO was briefed to produce business cases that have global potential and able to shift volumes of strong wool and importantly, increase returns to growers.
The net result from IDEO’s research is a growing desire to invest in sustainable materials to create a warm, safe and functional environment.
“This is a ripe opportunity for repositioning our strong wool industry,” he said.
“Using consumer and market insights, IDEO has created some novel business cases with supporting pitch decks, to help inform organisations that can and want to go direct to consumers.”
Next month SWAG will share the research findings in greater detail and outline the process it will follow to connect these business opportunities with organisations that could execute them well.
“It is critical we get this right,” he said.
SWAG is also planning support to accelerate growth for existing wool industry players through the commercial experience embedded in the group together with business case modelling and advisory assistance to secure development investment funds to help grow business that could scale globally.
Caughey says initiatives to establish and develop capabilities to be sure the industry is ready for new growth opportunities, such as those outlined by IDEO, remains the focus.
“Conversations have been focused on the need for training and accreditation, research and development, data collection and reporting, so NZ suppliers are able to present their fibre and products to the market in response to consumer demand,” he said.
An example of this is the need for sustainable brands that offer traceability back to the source that maintain high animal welfare standards and careful land management.
“While we know our industry is practicing high standards, we are intent on becoming a consumer-led and demand-driven industry, and these initiatives will give consumers the confidence to buy our products,” he said.
In a bid to develop an industry talent pipeline, SWAG is communicating with local universities to re-establish a new and dedicated wool industry course that will cover topics from growing and selecting wool to understanding global markets.
The plan is to look to the private sector for the seed funding of this new wool course.
Caughey says to date SWAG has been developing strategy and building knowledge and understanding of the issues facing the wool industry.
“As this work progresses, we can start thinking about potential industry structures that will continue SWAG’s work in the future,” he said.
The Wool Research Organisation of NZ (WRONZ) is collaborating with SWAG on a new framework to deliver highly innovative products to the market.
WRONZ is bringing its world-leading R&D around new and novel uses for wool, which will be supported by SWAG’s commercial and marketing expertise.
A joint announcement is expected on this collaboration in the coming weeks.
