New Zealand-Merino Wool

Like its Australian counterpart, New Zealand’s small Merino wool industry has its share of troubles, but not everybody is hurting.

The determination of a few New Zealanders to overcome the flaws of the wool auction system, and the Kiwi genius for marketing, means their Merino wool punches well above its weight in global brand recognition, carried along by native clothing brands like Icebreaker.

Woolgrowers are playing their part by abandoning the auction system in favour of contracts with the clothing and textile brands that are carving new niches for their wool.

Contract wool prices aren’t always ahead of the auction price, but consistent pricing that can be budgeted for years in advance is earning growing favour.

John Brakenridge, chief executive officer of New Zealand Merino (NZM), the company that helped start it all 12 years ago, expects just shy of half the country’s 10,000 tonne Merino clip to be sold privately this year. NZM will handle 80 per cent of the contracted wool.

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Source:farminguk.com