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Wool News
Summer 2020
Market Report
Crossbred wool market improves
After much of the world went into lockdown the supply chain to navigate.
due to the pandemic, prices for all types of Since the crossbred wool market is driven
wool dropped by between 35 and 40 per by supply and demand, as Christmas
cent. Since July we have regained most approaches we tend to experience a price
of these losses. Values however remain
lift, partly due to the fact that at this time
volatile with a recent appreciation of the
of year we have lower levels of supply and
NZD not aiding this recovery. Initially that
orders tend to come due pre-Christmas.
was driven by India, the largest worldwide
From December to February, however, more
producer of rugs, while China, which is
crossbred wool will come onto the market.
always a dominant player, was subdued at
How well it will sell, particularly as the
first, before becoming more active recently
as Chinese manufacturers begin restocking pandemic continues to affect many aspects
their wool pipelines. of life overseas, is difficult to predict.
Covid-19 has created significant challenges What we do know is that even with the
during these unprecedented times. There recent recovery, for most growers crossbred
wool prices remain well short of acceptable. behaviour on ethical grounds, are on our
is no escaping the fact that at the end of
Further significant improvement remains side. As long as those re-commence, or even
the supply chain, wool and wool products
essential. Until the world enters a post-covid accelerate once the ‘new normal’ arrives,
are predominantly sold on a retail basis.
equilibrium, it is difficult to forecast when crossbred wool growers stand to benefit.
When retail outlets are open, the pipeline
can operate. However, during a lockdown, such a price lift will occur. What we do know
that becomes impossible, creating serious is that wider social trends over the past Grant Edwards,
challenges for manufacturers and others in few years, particularly relating to consumer General Manager, PGG Wrightson Wool.
Helping grow the country
Excellent selling season for fine wool at auction despite the global disruption
As the present fine wool sale season is drawing offered for sale than this time last year. In market and selected offerings have been
to an end, mid micron and merino returns to addition, clearances being well up, with our well insulated from large volumes offered
wool growers have largely recovered to pre- sales since July having achieved a 95 per cent elsewhere, and global volatility that is yet to
lockdown levels. clearance rate. settle from the influence of Covid-19.
Although returns are still back on what was Compared to offerings elsewhere around Overall quality and competitive value have
sold in the previous two years, they remain well the globe, prices for New Zealand fine wool been further enhanced by the addition of a
ahead of long-term historical averages. this season have been highly competitive, representative of a major Australian fine wool
Increased volumes have come forward for the reflecting the excellent quality of our clip. exporting company, Australian Merino Export
Christchurch selling bench. For the season to Wool pricing trends generally mirror those Ltd, who joined our buyers’ bench again this
date, 10 per cent more fine wool has been achieved across the Tasman, though our season in Christchurch. Their presence further
underpins and broadens the competition for
local wool.
Most of the fine wool taken through our
auction room is consigned to the world’s textile
manufacturing hub, China. Long term demand
derives from trends in the active sportswear
market. While much of the merino wool we
produce is ultimately destined for retail in
China, what is not used there is re-exported in
garments worn in first world countries.
With all wool sales now live streamed, the
transparency of the auction system is further
enhanced, providing farmers with the option
to watch their clip sell in real time, or just follow
the action on a smartphone or mobile device if
they so choose.
This has been another remarkable fine wool
selling season, especially considering the
pressure the pandemic has imposed on the
market.
Dave Burridge,
South Island Auction Manager,
PGG Wrightson Wool.
Left to Right: Jason Everson & Dave Burridge - PGG Wrightson Christchurch Store Auction room
Devold growers meet in Christchurch
30 merino growers recently congregated in hearing Devold sales have rebounded quicker than was to help
Christchurch for a full day grower supplier meeting expected from COVID-19, to a point where sales in educate and
with Norwegian outdoor clothing company - Devold. 2020 are higher than last year. Added to this, Devold inform growers
They were joined by PGG Wrightson representatives are forecasting substantial growth as they aim to take of a key Devold
for a live video conference linking the growers with their household name in Norway to the world, which quality criteria,
Devold senior management and various other will include NZ, Australia, and Russia to name a few. being staple
business partners in countries such as Germany Devold’s new strategy of being a global premium strength, so
and Canada. brand has started, and they announced their new PGG Wrightson’s Craig Smith, General Manager
Devold Chief Executive Cathrine Strange provided brand vision as being “Devold - Outdoor Wool Expert”. Animal Health - Devold NZ
growers with insights and plans going forward, Devold predominantly source all their merino wool and Nutritionist
however one of the most pleasing aspects was from NZ because it is the best quality and every kg expert Laura Pattie was on hand to provide guidance
is fully traceable back to the farmer in this area. Laura gave growers insights from her
suppliers. Cathrine believes that professional background to help farmers understand
having their own state of the art the factors that affect staple strength. Genetics,
manufacturing facility in Lithuania environmental conditions, nutrition and crop feeds
which is currently producing 30,000 all play their part and growers were provided plenty
garments per week is a key point of of food for thought as they plan for the future.
difference to their competitors. NZ Wool Testing Authority Chief Executive Duane
“Now into their third year of the Knowles was also in attendance. He provided
fully traceable sheep to shop growers with insights to objective measurements
programme, the resulting quality for wool. The growers appreciated Duane’s very
improvements and sale volumes informative presentation, and his openness and
speak for themselves,” said Cathrine. willingness to share information resonated very well
with the growers in attendance.
One of the key themes of the day
Helping grow the country
Grumpy Merino an exciting new chapter for
Canterbury high country family
Sarah Reed’s husband Jono is the third nickname, Stumpy, and the name of the
generation of the Reed family to farm The station. Meanwhile Ann assists with the
Grampians, a 3500 hectare high country books and Jono, alongside shepherd
station 18 kilometres west of Culverden. Will Brown, concentrates on producing
With the couple’s young children Hank, the wool.
Greta and Alba poised to eventually take With assistance from PGG Wrightson local
on the mantle, Sarah, a nurse by profession, wool rep Peter McCusker Sarah has also
was keen to find her own niche in the family started a dedicated Grumpy Merino range
business, which runs 5500 merinos and of blankets.
400 cattle. “We are producing Grumpy Merino blankets
“Our farm is best known for Grampians for babies and children, in bassinet, cot and
Angus, our established stud business, which single bed sizes, plus a throw for bigger
has an annual Angus bull sale each June. beds. We send our premium hogget fleece
However, via a relationship set up by Bloch for scouring in Timaru, it then goes to Wool
and Behrens and PGG Wrightson, Jono Yarns to be carded, then to Interweave in
and his parents Graham and Ann have Auckland where the blankets are made. We
been supplying Devold of Norway with are also working with Wild Earth Yarns in
Grampians merino wool since 2017. Christchurch on a natural, undyed yarn. We
“We were fortunate to become a part of are passionate about designing, developing
the Devold brand and meet the team from and producing in New Zealand, working
Norway last year. I saw an opportunity with like-minded businesses that support
to take Devold into New Zealand rural our values and commitment to the wool
communities, which led to starting our industry,” she says.
new business, The Grumpy Merino, selling According to Sarah, a good day of sales is
Devold products in pop up shops around the most satisfying aspect of the
the country,” she says. new business.
Running the business from the farm, Sarah “I like to let the products speak for
sees wool grown by the family’s own ewes themselves, then allow ‘word of mouth’ to
transformed into specific garments. take over. Someone coming in and saying ‘I
“Our products are traceable, natural and heard about you from so and so’ is powerful
sustainable. Being part of the Devold brand, encouragement. Watching the business
which stands for high quality, is inspiring,” grow and evolve, taking on and overcoming
she says. new challenges: although you have highs
and lows, if you keep an open mind, and
A true family affair, The Grumpy Merino was find new ways to stoke the passion, it is
named from a combination of Graham’s really rewarding,” she says.
Jono and Sarah Reed with their three children
Helping grow the country
Family service brackets both ends Lessons in wool at
of woolstore’s existence Longbeach School
Fast forward 86 years to this spring, and PGG Wrightson Wool rep and South
the end of the ‘Number Four’ building’s use Island auctioneer Doug McKay was
as a woolstore. Purely by coincidence the a guest recently at Ashburton’s
last bale of wool carted out of the store Longbeach School, which this year
was taken by Bruce Rolls, grandson of LC. chose to focus on wool as their Country
Now semi-retired, Bruce has continued a Day theme. Presenting to the whole
fine family tradition of working for Williams school, Doug talked about the different
and Kettle, which became part of PGG purposes and types of wool, passing
Wrightson in 2005. round plenty of samples to give his
“My grandfather started as a 14 year old and young audience a hands-on feel for the
worked for the company for 32 years. At the fibre. Lanolin was one of the subjects
time many people thought he was mad for for the older children, who also
building such a big store, though it more produced some wool related art for a
than justified itself as the years went on. My school exhibition.
father Bob Rolls also worked for Williams and
In 1934 LC Rolls was General Manager of
Williams and Kettle, a stock and station
agency and general merchant of 50 years Photo: Doug McKay (right) with principal
standing with branches throughout the east Neil Simons (left) and Longbeach School
coast of the North Island. Kettle, giving 45 years of service, and with pupils, who are all wearing the school’s
Headquartered in Napier, three years into my tenure, across the three generations we merino jersey supplied by True Fleece, the
recovery from its massive earthquake have put in a total of 114 years between us,” knitwear company established by
Mr Rolls was responsible for building the says Bruce. PGG Wrightson woolgrowers Carl and
company’s new premises on the waterfront Williams and Kettle’s Number Four building Tori Uren of Le Bons Bay.
at Port Ahuriri, where capacity for up now belongs to Big Save, operating as their
to 30,000 bales made it the Southern distribution warehouse for the upper
Hemisphere’s largest woolstore. North Island.
Helping grow the country
Staff profile: Maree Mather
Maree, right, was at the Waimai Ram Sale understanding test results with clients.
recently where she caught up with Elle “My most valuable role is being in the shed
Perriam from Allflex, who acknowledged at shearing. Because shed hands are quite
the proceeds from the sale of a donated ram transient, I know someone will ask about
towards ‘Will to Live,’ encouraging more preparation, and that is the value of on the
young people to speak up. job training: understanding why you do
Working alongside growers in Waikato, something,” she says.
north to the Auckland Harbour Bridge and Maree is easily recognisable: apart from the
throughout the Bay of Plenty where she is PGG Wrightson branding, her car usually has
based, Maree Mather joined PGG Wrightson kayak roof racks on top.
Wool in May 2015. “I am lucky to have the Rotorua lakes so handy
In the current challenging climate she says and kayaking has taken me to some amazing
you have to be passionate about wool to places that most people can’t access.
remain positive. “I sit in a car for most of the day, so try to make
“I have farms that have converted to trees, sure I don’t sit down much otherwise. I always
and some looking at options other than have heaps of projects on the go, which at the
wool production. Shearing costs persuaded moment includes ‘training’ to tramp the Abel
several farmers into full wool this season, Tasman,” she says.
when traditionally this is a second shear It amazes her that the average kiwi home with
region. Fortunately, that has reduced the cost synthetic carpet is similar to having 22,000
Left to Right: Elle Perriam (Allflex) and Maree Mather
structure more than the returns. plastic bags on the floor, by weight.
“Now more than ever, growers need to started her career with a Diploma in Wool “We need to make sure facts like that are
present an excellent product, particularly and Wool Technology from Massey University. more widely understood. As an industry, we
ensuring their sheep are dry when shorn, and Experience as a wool handler and crossbred need to work together to keep the integrity of
there is no raddle in the wool. wool classer followed, then travelling the New Zealand wool. It is at the top of the world
“However, only one per cent of the world working in England, Norway and market choices and we need to keep it there.
world apparel fibre market is wool: if that Australia. “I’m always on the lookout at cottage
percentage were to increase only slightly we These days work entails a mix of auction, shed industries to find out what people are doing
wouldn’t be able to produce enough wool pricing and contracts. with wool. I bought some expensive felted
in New Zealand to meet global demand,” “With such a huge area there is usually soap the other day, made on Great Barrier
she says. someone doing something with wool, Island: it smells so good,” says Maree.
Growing up on a Whangarei farm, Maree whether it be shearing, wools in school, or
India export
volumes
growing
An interesting new
development for strong
wool is currently evolving.
After many years of China
being the dominant export
destination for strong New
Zealand wool (defined as
fibre diameter greater than
35.4 micron), volumes to India
have overtaken China for the
first quarter of the 2020-2021
season.
Source: Beef + Lamb Economic Service
Helping grow the country
Company’s first ‘Woolinar,’ in October, well received
In mid-October PGG Wrightson held the including General Manager Grant Edwards, manufacturer and one of the world’s largest
company’s first wool webinar. An online and Bloch & Behrens GM Palle Petersen. users of New Zealand wool.
woolshed meeting, nicknamed the ‘Woolinar,’ Stephen noted that the company has been Feedback indicates support for similar events
we welcomed wool growers from around committed to the wool industry throughout from growers and the wider industry. Sharing
the country, alongside participants from the its 165 year history, employs some 100 wool knowledge throughout the supply chain will
United Kingdom, India and Australia. business staff and invests significantly in wool help bring the sector together to focus on
Aiming to provide growers with relevant sector procurement. effectively marketing our sustainable fibre and
information, the woolinar heard from PGG Guests Lars Pedersen and Ole Winther, from its many unique characteristics.
Wrightson Chair Rodger Finlay, CEO Stephen Danspin, Denmark, provided insight from More woolinars are planned next year.
Guerin, and senior wool management their perspective as a major international
Left to Right: Rob Cochrane, Grant Edwards, Stephem Guerin, Rodger Finlay and Palle Petersen
Genetics breakthrough on measuring methane levels emitted by sheep
New Zealand farmers are AgResearch scientist Dr Suzanne Rowe led the
research. She says comparing flocks separated
methane emissions are heritable, allowed for
the establishment of a breeding value for the
the first in the world able into low and high emitting, on average there trait incorporated onto Sheep Improvement
was a difference of 11 per cent of methane Limited database (now nProve) last year.
to breed low methane- emitted per unit of feed between high and Stud breeders have embraced the opportunity
emitting sheep. low methane emitters, with no apparent to measure the methane emissions in their
A ten year breeding programme funded difference in the health, productivity or stud animals.
by the Pastoral Greenhouse Gas Research profitability of the respective sheep.
Information from Beef+Lamb New Zealand.
Consortium (PGGRC) and the New Zealand “We are seeing more lean growth, carcass yield More detail:
Agricultural Greenhouse Gas Research Centre and wool production in the low methane
https://beeflambnz.com/news-views/low-
resulted in a breeding value for methane sheep, without any negative trade-offs.”
methane-emitting-sheep-reality-nz
emissions. This breeding programme, which confirmed
Helping grow the country
Auction livestreaming heading North
Our North Island wool auctions are set to To view the auction, go to our website:
go live on the internet. Just as we have in https://www.pggwrightson.co.nz/Services/ Contact
the South Island in recent years, our regular Wool/Wool-Auctions
North Island auctions will soon be Northland
livestreamed. Growers throughout the or via our PGG Wrightson Wool facebook page. Henry Bradfield 027 535 1924
country will be able to see their wool sold
in real time. King Country/Taranaki
Paul Terry 027 498 6618
Te Kuiti
Michael Youngman 027 273 5660
Maintaining preparation standards Bay of Plenty
Despite low crossbred prices, growers need to stick to a high standard of wool preparation Maree Mather 027 809 3356
to maximise wool returns. We need to maintain New Zealand’s reputation for producing a
high quality product, which all begins on farm and in the woolshed. East Coast
Chris Payne 027 956 5192
Raddle
Shane Horne 027 598 6540
Use of non-scourable raddle on your sheep is likely to cause problems. Non-scourable
raddle cannot be washed out. Please ensure the raddle you use is water soluble.
Manawatu/Whanganui
Contamination Ian Hopkirk 027 702 9496
Please ensure bales are kept free from foreign materials. If undetected, this form of
contamination has serious implications for manufacturers. This photograph is of a pair of Hawkes Bay
pink and black synthetic socks recently found in a bale at the wool scour. Andy Anderson 027 254 8754
Central Hawkes Bay/
Dannevirke
Stephen Fussell 027 595 3351
Wairarapa
Marcus Loader 027 448 3250
North Canterbury/Tasman
Peter McCusker 027 432 4926
North Canterbury/West Coast
Rob Lynskey 027 591 8454
Central/Mid Canterbury
Doug McKay 027 432 6910
West Otago/Northern
Southland
Jared Manihera 027 226 0263
Otago
We’re going cheque free Kevin Waldron 027 432 0117
In early 2021 PGG Wrightson will lose the ability to issue cheques for paying proceeds,
South Canterbury/North
refunds or other payments to customers.
Otago
If you have historically been paid by cheque, please contact us to ensure we have your Alistair Flett 027 432 5369
bank account details.
Please complete the Direct Credit Form and email wooladmin@pggwrightson.co.nz Central Otago
Graeme Bell 027 650 2900
Southland
Daryl Paskell 027 548 3469
Lawrence Paskell 027 434 7641
Stuart McNaughton 027 435 0993
Freephone 0800 497 496
www.pggwrightsonwool.co.nz
Helping grow the country
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