New wool body begins to take shape

Anette Scott, Farmers Weekly

A Wool Impact report highlights reasons to believe in a positive and profitable future for New Zealand strong wool with plans afoot to stand up a new organisation by 2027.

Wool Impact chief executive Andy Caughey said market conditions are improving, and product innovations are being launched and are gaining traction with deeper collaboration building a stronger sector. 

“Solid progress is being made in securing a profitable future for wool; however a consistent and collaborative effort is required.”

Caughey said Wool Impact’s work will continue for up to two more years, offering a crucial runway to deepen brand engagements, transfer transactional value to commercial entities and transfer the knowledge and relationships to a new enduring organisation.  

“Wool Impact remains focused on supporting leading brands globally to use wool as a sustainable choice for design sourced through more direct relationships with wool growers in a way that creates value behind the farm gate.

“There is an abundance of opportunities provided we participate in in-market engagement and meet changing market demands.

“Over the last three years we’ve laid the groundwork for meaningful, lasting change in the way NZ wool is valued and we are encouraged by the lift in wool price, by over 80% during this three-year period.

“We now have confidence and optimism going forward as we pick up better pricing.

“We are at the stage now there are opportunities arising for growers to sign up to contracts and in sourcing fibre, manufactures want to get closer to growers. 

“We are discussing commercial opportunities for brands and growers to meet market demand.”

Acting as a facilitator chain, Caughey said, Wool Impact – as part of the newly formed Wool Alliance – is sharing knowledge as part of the transition to stand up a new single-voice, market-driven organisation to continue the work of both Wool Impact and Wool Alliance to secure the future for NZ’s strong wool sector. 

Wool Alliance is a cross-sector body launched through a formal agreement between Campaign for Wool NZ, Wool Impact, Beef and Lamb NZ and the Wool Research Organisation of NZ (WRONZ).

“The work of Wool Impact will continue and we will transition into the new entity, with expectation by 2027 we will have a representative organisation for growers.

“The model we worked on has good momentum now with underlining drivers to reposition strong wool.”

A basic version of the new levying body, with the working title of NZ Wool, is expected to be in place by the middle of this year, with a fully operational version by 2027.

NZ Wool will be non-profit, transparent and accountable and have a budget of about $5 million a year.

This would come through  several funding lines, including suggestion of a possible levy around $200 per farm, equating to about two cents per kilo greasy wool, and contributions from industry and growers.  

Former Fonterra chair John Monaghan heads the Wool Alliance as the inaugural and independent chair.

In a webinar presenting the proposed model to growers, Monaghan said while significant progress has been made, ongoing efforts and improved collaboration are still required. 

A number of key areas of work have been identified by an initial steering group, including standards and certification, communication within the industry, vocational training, advocacy and funding.  

Early indications are that Wool Impact and Campaign for Wool NZ will both consolidate into the new organisation and their work continue under the new structure.

BLNZ and WRONZ will not sit within the new organisation but would work with it.

Caughey said from Wool Impact’s perspective the model will give the sector the connection, scale and strength it needs to thrive, ensuring an enduring model delivering double the value for wool.

“It will be an enduring wool industry model to rebuild strong wool, increase returns to growers and create long-term strategy to lead the wool sector into the future.”