Orders are on the rise as strong-wool shortages take hold on the world market or companies expand businesses with merino and mid-micron wool.
Reduced strong-wool stocks flowed through to NZM, which sold 51,400 bales during the six months to December, about 4% fewer than the same period the previous year. Merino and mid-micron supplies remained consistent.
To meet customer needs, NZM has reached agreements with two South African brokers to top up its mainly New Zealand and Australian supply base.
NZM now has access to merino wool from about 200 South African farmers certified with its ZQ programme to meet high animal welfare, environmental and social standards.
Further shipments to a Chinese warehouse are expected to result in reduced supply times and meet evolving brand needs.
NZM global supply general manager Matt Hand said NZM had been certifying ZQ farmers in South Africa for the past five years to buy fine wool when brand partners needed more.
‘‘They are wool types in South Africa we can’t readily buy in New Zealand in the volumes we need, so typically [19.5 to 22] microns. That sort of type is just not produced at scale here, so we have 200 growers there who have previously been with the Responsible Wool Standard owned by the Textile Exchange in Europe and have elevated their certification to ZQ. We audit them through the ZQ programme and then we can purchase their wool as we need it.’’
In a normal season about 85% of NZM’s merino is from New Zealand, 10% from Australia and 5% to come from South Africa.
A deep drought in Australia, with soil moisture levels as low as the driest 10% of years in Victoria, has been counterbalanced by a good growing season in New Zealand.
The South Africa micron range sits within the broader end of the active-wear market as well as the sock market.
Mr Hand said the company would go close to buying the full 5% from South Africa this year and possibly go beyond that in following seasons.
‘‘It’s quite small, but it’s an important addition to make sure we can offer that continuity to our brands.’’
Mr Hand said NZM competed with the wider market for the non-contracted South African merino, but paid a premium for it being ZQ-certified.
Active-wear demand was developing beyond the United States and Europe into China and the Middle East, he said.
Over the years, NZM has built more than 120 brand partners around the world and numbers and brand growth are both increasing.
Mr Hand said some brand partners only wanted New Zealand merino and NZM was completely transparent about its origin.
Other brands accepted mixed origins or wanted a merino split between the three countries, he said.
Mr Hand said strong-wool demand was lifting, particularly among interior textiles customers.
