Wools of New Zealand and PGG Wrightson team up to boost wool supply chain efficiency
Wool farmers are hoping that efforts by two leading companies to develop a more efficient supply chain would eventually boost farmgate returns.
While, Wools of New Zealand already has an extensive trade partner network internationally, this is the first arrangement the farmer-owned company has entered into with a Chinese manufacturer to produce branded products.
The agreement was signed by Wools of New Zealand chief executive John McWhirter and Jimmy Huang of Yangxin Ruixin in Christchurch.
“We already work with a New Zealand exporter to China and supply a yarn spinner who sells out farmers’ product into a range of companies in the Chinese market,” says McWhirter.
“However, this is our first agreement with a Chinese company producing branded products,” he says.
The agreement means Yangxin Ruixin will be able to use the Wools of New Zealand logo on their products that contain at least 60% Wools of New Zealand-supplied fibre.
“This is adding to the growing list of Wools of New Zealand partners taking the New Zealand wool story to international consumers,” McWhirter says.
He says Yangxin Ruixin and the Chinese Embassy approached Wools of New Zealand to discuss establishing the branding agreement.
Huang was in New Zealand as part of a visiting Chinese delegation.
Yangxin Ruixin was founded in 1998 and is located in the Shandong province. It sells its products under the Silktouch brand in China while exporting under the Ruixin brand.
It produces a range of types of carpets and rugs for the commercial, hospitality and residential markets and operates the largest hand-tufted factory in China, with 3,000 employees.
McWhirter says an advantage of the agreement is the ability of Yangxin Ruixin to monitor any Chinese manufacturers falsely claiming to be using Wools of New Zealand wool.
“Counterfeit wool claiming to be New Zealand wool does get sold,” McWhirter says. “We have taken action in the past against companies using our logo without permission.”
“However, it is hard for us to police that in China so it is very good to have a partner and ‘eyes in the market’ there,” he says.
“Working with Yangxin Ruixin means they have a brand authenticated product and an interest in protecting the brand,” McWhirter concludes.
