Global Demand Drives Strong Wool Prices Up 130% in New Zealand
The world is waking up to the disadvantages of carpets derived from petrochemicals, creating opportunities for New Zealand strong wool.
ASB is the first bank to partner with Wool Impact, an organisation that supports New Zealand's wool sector to build a more resilient, higher-value future for strong wool by strengthening market connections, stimulating demand, and building essential sector capability.
Strong Wool Prices Show Signs of Recovery
Andy Caughey, chief executive of Wool Impact, says New Zealand produces approximately 100,000 tonnes of wool each year in New Zealand.
"Over the past 12 months, we've seen average prices for strong wool increase by over $2/kg," Caughey says. "Sustaining that increase means an extra $200 million into rural communities."
He says wool now appears in new categories and new uses through the work of innovative brands, investment in product and value chain innovation, and new businesses working with wool.
"ASB has come on board at a pivotal time, and its support will help amplify these new opportunities," he adds.
Part of NZ's National Identity
ASB's general manager rural, Aidan Gent, says wool is part of New Zealand's national identity, adding that the bank sees the potential for significant gains to be made in farm returns by improving its market relevance.
"Wool Impact has been making great strides over the past the past three years, and we want to help accelerate that momentum."
The partnership is just the latest in a series of programmes designed to demonstrate ASB's commitment to help drive growth the food and fibre sector.
The bank is also backing Kiwi farmers through its Every Hectare Matters programme which provides access to advice, insights and capital to maximise farmers' land potential and ultimately build resilience and productivity over the long-term.
Gent says Wool Impact's work "aligns strongly" with the bank's focus on unlocking greater value for the food and fibre industry.
"Strong wool is a natural, renewable fibre with significant potential, and teaming up with Wool Impact will allow ASB to back practical initiatives that support rural communities, sustainable land use and long-term sector growth," he says.
Wool Impact Working Across The Sector To Rebuild Capability
Meanwhile, Caughey says ASB has signed on at a critical time for the sector.
"Strong wool is a natural, renewable fibre with significant potential, and teaming up with Wool Impact will allow ASB to back practical initiatives that support rural communities, sustainable land use and long-term sector growth," he says.
"Partnerships like this give us the confidence and capability to keep investing in the initiatives that will help unlock that value.”
Wool Impact works with wool businesses across the sector and is part of a Wool Alliance with Campaign for Wool New Zealand, Wool Research Organisation of New Zealand, and Beef + Lamb New Zealand working on what’s needed for a vibrant wool sector and how this can be funded long-term.
Caughey says the partnership is both a practical investment in wool’s future and a recognition of the work already underway. He credits MPI’s investment via its Sustainable Food and Fibre Futures fund, WoolWorks, New Zealand’s wool scourer, Silver Fern Farms and the four other main meat companies for Wool Impact’s initial backing and vision.
