A multimillion-dollar contract to supply New Zealand fine wool to a United States-based sock manufacturer is being heralded as ''just the start''.
PGG Wrightson Wool yesterday announced a multi-year contract to supply 22.5 micron merino wool to point6, a company developed seven years ago by apparel entrepreneurs Peter and Patty Duke.
The couple's decision to enter into a direct supply contract to provide line-of sight to where and how the wool used in their garments was grown, was helped through the ''proactive'' efforts of farmers Walter Cameron, from Kurow, and Simon Williamson, from Omarama, PGG Wrightson Wool business development manager Craig Smith said.
Mr Williamson said the couple were keen to source wool from New Zealand and had not had any success.
They were able to ''put them on the right track''.
Mr and Mrs Duke were frequent visitors to New Zealand and knew the country's 22.5 micron wool was ''the best in the world'', Mr Smith said.
''They wanted to lift an already premium product to another level by going to a pure New Zealand 22.5 micron wool and, because they work on 12- to 15-month lead manufacturing times, also wanted to lock in price stability,'' he said.
The contract would result in PGG Wrightson Wool sourcing 150 tonnes a year from New Zealand growers.
Starting in early March, the company would be talking with growers and, providing they could meet the tight measurement criteria, which included length, strength and whiteness, would offer a price which equated to a little below the 10-year high, Mr Smith said.
The wool would be shipped to a yarn spinner in China and then on to point6 in the US, where it would be made into socks.
In the future, point6 socks would be made exclusively from New Zealand fine micron merino wool, he said.
He was confident it had the potential to mean greater demand for the fibre in the growing base-layer clothing and specialty outdoor clothing market.
Mr Williamson described point6 as a great company, while Mr and Mrs Duke were ''really good people''.
As their business grew, he also believed, they would get into other types of clothing and a ''real partnership'' would be forged.
The contact between grower and end user worked for both parties, giving him an insight into where his wool was going, while point6 got an insight into where it came from.
The merino outdoor industry in the US was ''growing massively''. While 150 tonnes was a lot of wool, it was ''only just the start'', Mr Williamson said.
''It's got to be good for the industry,'' he said.
