Increased international demand for fine wool could spell profit for sheep farmers with wool giving kiwifruit and wine a real run for their money in terms of exports, he said.
There is a future in wool for farmers and for NZ, he said.
“Which is great news for fine wool producers and farmers considering transitioning into it.”
Global demand for natural fibre and the Merino Company’s ethical wool brand ZQ Merino is swinging the pendulum in wool’s favour.
“We are connecting more and more wool growers with long-term supply contracts and we are seeing supply being soaked up seasons in advance.
“Today a crossbred wool fleece fetches about $3 clean a kilogram whereas currently a Smartwool 22 micron contract going forward for the next three to five years has a base price of more than $20/kg clean.
VF Corporation, one of the world’s largest apparel, footwear and accessories companies, is incentivising NZ’s sheep industry to grow more fine wool.
VF Corporation, which owns labels including The North Face, Timberland, Smartwool and NZ-founded brand Icebreaker, has developed the incentives for farmers as part of its commitment to sustainable solutions.
“Today we expect more of our products in design, performance and environmental and social impact and we believe VF has the responsibility and opportunity to lead by example,” VF global procurement and material supply vice-president Tom Conneen said.
VF Corporation’s partnership with Merino has been an obvious choice with wool being a long-term investment.
“Ongoing investment in genetics, leading animal husbandry practices and adoption of new supply models will be required.
“VF is committed to working alongside NZM, the shearing community, breeders and growers,” Conneen said.
“We’re confident enough in the future of wool to incentivise production through long-term contracts and provide support where we can.
“VF is working hard to be the global leader in Merino wool supply and the preferred partner of growers.”
The long-term wool contracts offered to NZM growers, such as the industry-first, 10-year contract with Icebreaker coupled with contracts for Silere, NZM’s merino meat brand jointly owned and operated with Alliance, make fine-wool sheep farming more profitable than dairy grazing and other sheep farming systems, based on analysis by both NZM and AbacusBio.
“The increased demand for and value of contracts has exceeded our expectations.
“We’re on the crest of a wave and are doubling down on our investment in adoption of the right genetics and practices to ensure this demand can be supplied from NZ wool,” Brakenridge said.
