25 Mar 2022

Wool Impact NZ plans for positive impact

From Country Life, 9:12 pm on 25 March 2022
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Photo: RNZ/Carol Stiles

Carpet marketer Wools of New Zealand says demand for woolen carpet is lifting and the new body forming to help the struggling strong wool industry will give it a further boost.

Wool Impact NZ will launch mid-year with the aim of working with brands to get strong-wool products into markets quickly and speed up returns to farmers.

Wools of NZ chair John McWhirter says in the past 6 to 12 months the demand for wool carpet has lifted from 15 percent of the soft flooring market to 20 percent.

"And what's exciting about that is when you think about it, that's actually a 25% increase in demand for wool carpet. Yes, it's off a  small base. But it's a clear signal that consumers are actually moving back to wool, to natural fibres and away from man-made fibres."

He says Wool Impact NZ will further fuel market demand by commissioning research and providing evidence of wool's qualities so it can meet building specifications.

"Wool Impact will allow us, as an industry, to actually gain the knowledge that's missing around carbon, fibre, strength.  When we're putting products into the commercial market, we have to meet certain regulations, but a lot of the actual data is not available, so you can't tick all the boxes, which is a problem."

John McWhirter, CEO Wools of NZ

John McWhirter, CEO Wools of NZ Photo: RNZ/Carol Stiles

Wool Impact NZ's aim is to help companies deliver products ethically-minded consumers want.

"They can bring new ideas to us, we can take those ideas and commercialise them, because that's the bit that we do. And that means that we can we can grow the demand for wool and we can add value to wool. We're one party inside an industry, there are others that they can help to do that as well. So collectively, we can turn the industry around," John says.

He says he can now see a pathway for New Zealand farmers to build sheep numbers from 25 million to 30 million.

Wool Impact NZ chair Rob Hewitt says wool is a fantastic product but the strong wool industry is in a dire state.

"And it's been a slow moving train wreck for 40 years, quite frankly."

Rob Hewett

Rob Hewett Photo: RNZ/Carol Stiles

He says previous efforts to  improve returns to farmers have focussed on production and the supply chain but Wool Impact NZ will focus on consumers.

"We are a catalyst. So what that means is we work with brands, and companies that have the products that they can take to consumers that use strong wool.

"If you don't understand the consumer and react, and respond to what they desire, by offering them the products and services that they need, or may have never thought of, you're not going to get anywhere."

He says people are now making purchase decisions around what is good for the planet.

"If we give them a reason to buy it, because the products and services that they're looking for actually contain strong wool and they understand the story about sustainability and naturalness and it just happens to come from New Zealand, which is a really big selling point for them, then, happy days."

Rob says wool carpets will continue to be a big part of the strong wool industry.

"But having said that, there's a lot of potential around things like cosmetics and pharmaceutical uses. And there's a lot of potential around insulation, whether it's noise or heat insulation, and just more innovative ways to put flooring down, whether it's carpet tiles or other activity. So there's lots of things that are on the go, some are quite new, like pharmaceuticals, and others are tried and tested."

For a few years now the cost of harvesting wool has been greater than the revenue.

That's unsustainable, Rob says.

"But if we can get it to five bucks a kilo, that's a good start. But long term, quite frankly, if we can't get it to $10 a kilo, then you'd have to question why the hell are we doing it."