At PGG Wrightson Wool we are pleased to facilitate and offer wool contract opportunities for our grower clients, with payments guaranteed to be on time, every time.
The below graphs look at how our Crossbred Lamb’s Wool and Flexi-Wool contracts have been performing in recent times compared with the spot market.
PGG Wrightson Wool, alongside our International Sales and Marketing business Bloch and Behrens, has been working with Wool Integrity brand partner Norsewood Knitwear on a new range of products that include PGG Wrightson Wool with the Wool Integrity stamp.
Recently released under the brand Boundless available in charcoal or pink, and now exclusively available through PGG Wrightson retail stores and online, a work sock is the first product of this relationship followed by a beanie and gloves. Based on the classic Softly Softly, initially developed by Norsewear in the mid 1960s with a cushioned sole for comfort and a lighter weight upper to reduce bulk around the feet and ankles, the Boundless sock is 100 per cent produced in New Zealand.
Boundless uses a blend of the soft North Island lamb’s wool and South Island merino fibre including nylon reinforcing for the heel, all sourced through PGG Wrightson Wool Integrity partner growers. After scouring in Timaru and Napier the wool goes to WoolYarns New Zealand in Wellington for dying and spinning, before being sent to Norsewood Knitwear in the historic town of Norsewood, where the socks are produced.
Carrying the Wool Integrity brand, created by Bloch and Behrens in 2015, Boundless will be internationally recognised as meeting criteria around animal welfare, environmental sustainability, traceability and wool quality.
Wool Integrity growers abide by the internationally recognised freedoms of animal welfare: their sheep are free from thirst, hunger, discomfort, pain and disease, distress, and have the freedom to express their normal behaviour.
PGG Wrightson’s involvement at every step in the supply chain, from farm gate to retail, ensures a 100 per cent local product: part of our commitment to ensuring better returns for growers, and the wider industry.
BrokerWeb Risk Services Limited (BWRS) are now providing leading insurance broking services to PGG Wrightson customers and the wider rural community.
BWRS is New Zealand’s largest independent insurance broker and specialises in the provision of quality insurance broking and risk management solutions for corporate, commercial, rural, and domestic insurance.
BWRS is committed to providing PGG Wrightson customers with an insurance solution that is based on advice and choice. BWRS understands that all circumstances are unique, and personalised advice and solutions are required to meet your needs.
Like PGG Wrightson, BWRS has a solid presence in the agribusiness sector and a nationwide reach. This association will help both build long-term relationships with customers active in primary production, enabling BWRS’s brokers to design tailored solutions that will work for farmers and protect their interests.
BWRS’s brokers have local knowledge and are able to provide customers with easy personal access to market-leading insurance products and risk advice.
Lifestyle Insurance – Your Way
As a lifestyle block owner you’ve chosen to live closer to nature and enjoy the best that New Zealand has to offer. Your space and how you use it is determined by you and your own circumstances. Our insurance solution provider, BWRS, believe that your insurance cover should be the same, which is why they are providing PGG Wrightson customers with an exclusive lifestyle insurance solution based on advice and choice.
Don’t pay for cover you don’t need, or get caught under-insured if the worst happens. Your Way allows you to select the optional cover benefits you need with limits appropriate to you.
Growing demand from overseas mills has pushed up crossbred prices at wool auctions throughout February and mid-March to prices at least at pre-Covid levels. There has been a slight tempering of these increases throughout late March as overseas markets adjust to these increased values.
Crossbred wool makes up 85 per cent of New Zealand’s clip. In recent years the price of crossbred wool has fallen well short of a sustainable level, and values hit rock bottom last year during the Covid lockdown. A price reduction of between 30 and 40 per cent occurred when the pandemic precipitated serious disruption through the wool supply chain, this on values already at historically low levels. At sales this year however, values have lifted notably and across the board.
Chinese New Year celebrated this year in early February is a period we are always aware of. China is the most significant market for New Zealand wool, taking around 55 per cent of our clip. Typically during Chinese New Year wool mills shut down and manufacturers take a holiday from the market. That was not the case this year as we continued to write new business with our Chinese customers.
India has also provided vigorous market competition during recent auctions, alongside the European mills.
Although the situation is short of what we would all like, the percentage of lots passed in at this year’s auctions has been low: growers are prepared to meet the market, with a stoic level of realism around the values on offer.
Although the recent market improvement is encouraging, we still have a long way to go before growers can generate any significant enthusiasm. Global demand for wool over time is projected to continue to rise steadily as more and more consumers wake up to its characteristics as a sustainable, biodegradable, natural fibre. Returns should at least hold steady, if not continue to build. By continuing to work closely with our overseas customers, as the world wakes up to the attributes of wool that competing fibres can never match, we will support and grow our market wherever we can.
In the present circumstances growers need to remember that the best prepared, higher quality wools will continue to command a premium: vigilance in the wool shed is the key to maximising returns.
PGG Wrightson Wool
We have plenty more wool news articles on our blog