Strong wool's 'time has come'

New Zealand strong-wool growers have a story to tell the world and it's one yarn the chairwoman of new wool company, Wool Partners International, is absolutely determined it will hear.

Theresa Gattung was in Oamaru last week and spoke to Southern Rural Life about why Wool Partners (WPI) has the right blueprint to lift the fortunes of wool growers.

"A critical mass of growers now realise it [the wool industry] is at a critical stage," Ms Gattung said.

And Wool Partners' resolve to link grower and market was crucial, she said.

This was the element that had been key to the success of other industries - kiwifruit, merino and now meat producers were focused on creating the same strategy.

"On top of that, wool's time has come."

Sophisticated customers were "crying out for authenticity".

"Wool is beautiful and wool is better.

"It should be a marketeer's dream."

What had been allowed to happen to the strong-wool industry over past years - an industry, which was once the "backbone of New Zealand", was a "national tragedy".

"The status quo has clearly failed."

Wool was in crisis before the worldwide recession, she said.

Farmers were now being paid less than half the price for wool than they were several years ago - and this past year it was not enough to cover costs.

In response, sheep numbers had dropped, farmers were moving out of farming sheep to dairying, and farmers who did remain were moving towards breeding sheep for meat only, and to breeds that shed their wool.

On the other hand strong wool's major competitors were thriving, despite the recession.

It was reported, despite the recent oil crisis, the prices for synthetic carpets had gone up nine times in the past year, Ms Gattung said.

"Wool has been completely out-marketed and out-positioned this generation."

The synthetics industry had out-lobbied and out-marketed wool, she said.

Soon after Wool Partners was formed it had to pull together its resources to face down its competitors in a crucial market.

The company had the heads-up from United States manufacturers it needed to move quickly to persuade US standards administrators to recognise wool as a sustainable carpet fibre, Ms Gattung said.

"We were nearly shut out of the game altogether."

The US National Standards Foundation and the green building awards body, Leadership in Energy and Environmental Design, administers the NSF 140 standard, which sets out specific requirements for the use of carpets in sustainable buildings.

Since the NSF 140 standard was first put in place in 2007 there had been no performance requirements - a point-system ranking - in place for wool, and it had been ranked using a point system that favoured synthetic carpets.

This was rectified in June.

"Wool will now have a NSF 140 standard points system."

Ms Gattung is realistic about the future for strong-wool growers.

"A premium is possible, but it is not going to happen overnight."

And there were certain requirements that were critical to success.

Initially, Meat & Wool New Zealand and New Zealand Trade and Enterprise conducted a study, the outcome of which showed, alongside any market innovation, the industry needed to consolidate and growers needed to unify before the industry could get back on its feet.