The Wanaka businessman and National Council of New Zealand Wool Interests chairman, speaking at a Kavanagh College agribusiness class in Dunedin last week, dared pupils to "be disruptive with your thinking" as the "next generation of innovators".
He challenged pupils to explore ways to include wool in the design of new products.
"Think outside the box on how you can get wool in."
He used the noise coming from a neighbouring classroom as an example of how wool could be included in wall panels to reduce noise pollution.
"Not only would it sort the moisture out in this room, it will keep you warm and you won’t be able to hear what is going on next door."
Wool was the "best fibre in the world and for the world," as it was an environmentally friendly material.
In contrast, if synthetic carpet was laid in a three-bedroom house it was equivalent to the use of 22,000 plastic supermarket bags, Mr Smith said.
He was "battling" to get the Government to use more wool products.
The Government contradicted itself by aiming to be "clean, green and environmental" and then put synthetic carpet in its buildings, he said.
The Government needed to support the wool industry by introducing new regulations such as making it mandatory to install wool carpets, drapes and insulation in its buildings.
Other measures could be introducing "significant taxes" on synthetic carpets being imported in New Zealand and banning synthetic insulation.
"We’ve got to be smarter."
He asked the class how many of them recognised the Woolmark logo.
None of them recognised the wool industry certification mark.
"We’ve lost a generation," Mr Smith lamented.
The Woolmark was once among the most recognised brands in the world but the "arrogance" of the wool industry had allowed it to wrongly believe the natural fibre could promote itself.
The arrogance allowed manufacturers of synthetic products to "mimic" wool.
"We let the synthetic wool industry basically give us a hiding — it beat us up and kicked us out."
Year 13 pupil Tekahui "TK" Mariu-Boreham dressed as a sheep for the class.
Mr Smith said it was "great" he dressed up but the costume was made from synthetic materials.
The wool industry was at fault by not providing an equivalent woollen product for TK to wear.
Mr Smith is the general manager for Devold Wool Direct — a Norwegian clothing company.
He was concerned by some farmers shifting away from sheep because of low wool prices.
"That’s terrible — my whole life is based around wool. I need there to be sheep farmers."
Wool prices needed to lift through new ways being found to use the "exciting" fibre.
"I’m a wool freak, a wooloholic — I just love it."
