In the company's annual report - the first since the company's capital raising was completed in February - Mr Shadbolt said some would say the capital raised was small but they ''got started''. The company has reported an after-tax loss of $340,437 for the year ended June 30.
The industry's primary concern had to be with price volatility. When there was a price spike, manufacturers switched away from wool, eroding demand and fuelling further volatility, he said.
At an estimated production cost of $4.50 a kg of greasy wool, crossbred wool growers had only two years of profitable returns over the past decade, continuing a 30-year downward cycle.
Wools of New Zealand had developed a stable pricing model designed to stabilise prices for growers and customers alike, which, over time, would provide incremental growth in demand and ultimately returns at the farm gate, he said.
Two six-month stable price contracts direct with customers had been developed and had operated successfully.
''To our knowledge, this is unique in the industry and will be a mechanism used widely as Wools of New Zealand develops,'' he said.
Mr Shadbolt thanked the 720 shareholders who ''dug deep'' and invested $6.05 million of capital. Those shareholders produced about 14.5 million kg of strong wool annually and there were a further 300 supportive growers who produced about 5 million kg.
The company was seeking a means of simple transfer of shares between farmers, such as for farmers who sold their farm, and would offer that opportunity shortly on a willing buyer willing seller basis. Future shareholding would be discussed over the coming months but no further capital was required by Wools of New Zealand in the short term. Further capital raising was not envisaged until at least 2015, he said.
Wools of New Zealand had openly expressed a willingness to collaborate with participants in the New Zealand wool industry, Mr Shadbolt said.
''Fruitful discussions'' had been held with New Zealand Wool Services International, Cavalier Woolscourers Ltd, spinners and AgResearch and the company continued to talk to Primary Wools Co-operative as a ''like-minded'' grower-owned entity towards the aligned goal of merger, he said.
Wools of New Zealand chief executive Ross Townshend said New Zealand wool should not be pitched against New Zealand wool, when the ''real enemy'' was synthetic fibre.
The latest ANZ commodity price index posted a fourth successive monthly increase, rising 1.3% in October, with the price of wool increasing 10% in the month, climbing to a 22-month high.
