Keratin biotechnology company Keraplast has agreed to pay a clean price of $6.88 per kilogram for the 2025-26 financial year in a contract with Wools of New Zealand (WNZ).
This is about 40% above last year’s prices, although strong wool has since made a comeback, reaching more than $5/kg at PGG Wrightson’s last South Island auction.
The 30 farmers will supply about 400 tonnes of wool over five years.
Keraplast manufactures advanced biomaterials using keratin — the natural protein that makes up about 95% of a wool fibre and gives it strength, flexibility and resilience.
The company’s range, including wound care, tissue repair and hair and skin care products, is sold to overseas markets such as the US, Europe and Asia.
WNZ chief executive John McWhirter said the contract was a major price lift for strong wool farmers.
"For participating growers, the agreement provides price certainty, demand security and access to a rapidly growing global biomaterials market," he said in a statement. This price is about $2 per kilogram ahead of the current market, which is a meaningful premium for farmers.
He said the contract showed returns could lift well beyond traditional commodity pricing when wool was connected to high-value end uses.
The agreement reflected WNZ’s strategy of working with innovative global manufacturers to add value to wool and improve farmgate returns, he said.
Keraplast chief executive Howard Moore said New Zealand wool offered advantages over alternative keratin sources used globally.
He said wool-derived keratin ingredients were highly suited for medical, nutraceutical and personal care uses after they were manufactured through Keraplast’s technology.
"The consistency, traceability and quality of New Zealand wool is critical to Keraplast’s product performance. New Zealand strong wool gives us a reliable, high-performing raw material and the regenerative farming systems behind it align strongly with our values and our customer’s expectations."
Wool supplied under the contract must come from farms certified by the Savory Institute, following independent audits and a multi-year verification process.
Keraplast was initially in a partnership with New Zealand company Keratec before merging into one business in 2009 with an international patent portfolio today of more than 130 patents.
