Editorial: Wool's Back in the Black
OPINION: Confidence in the wool sector is rebounding as prices hit levels not seen in more than 15 years.
Lamb wool averaged about $6.45 clean, he says. The demand was mainly driven by strong interest from China for inclusion in clothing and upholstery products, says Ching. They weren’t so interested last year but it is back in fashion this year.
Otherwise, the season is winding up and everything else just “pottered along”.
Meanwhile New Zealand Merino Company (NZM) has secured a new NZ$8 million fibre supply contract with United States sock and apparel manufacturer SmartWool. The one-year deal means 600 tonnes of New Zealand fine and medium micron wool will be shipped to the US for use in production of SmartWool’s performance and lifestyle socks and clothing.
NZM chief executive John Brakenridge says the deal with SmartWool continued an 18-year partnership worth NZ$150 million to NZM’s growers.
“The SmartWool contract is testament that a new way of doing business can work in our commodity-based primary sector,” he says. “When we first introduced the idea it was hugely disruptive, so it’s satisfying to see that the model has longevity. This new contract reinforces that.”
SmartWool president Mark Satkiewicz says the company’s focus on new product innovation had required more complex fibre micron and volume analysis in advance of the contract.
“We’re excited about this innovation and opening new supply opportunities for New Zealand growers. We value our loyal grower partners in New Zealand who understand and produce what we need here in the market.”
In addition, SmartWool’s customers were increasingly interested in the company’s “brand story” – particularly ZQ accredited fibre from NZM growers.
“Consumers, especially younger ones, are taking a much stronger interest in the origin and integrity of products. New Zealand farming has one of the strongest brand stories available.”
