After a sustained period of growth, the wool market has continued to hold at significantly improved levels through recent sales. 

Strong competition and tightening supply are supporting confidence across the sector, with prices paid in the auction room the highest they have been since 2011.

The move to a national auction system has begun positively, with the first two combined New Zealand wool sales delivering animated bidding and further lifts across most wool types.

The transition to a national open-cry selling platform is designed to strengthen competition by increasing eyes on the marketplace, increasing buyer participation and improving efficiencies across the sector.

While wider global uncertainty continues to influence international markets, demand for New Zealand wool remains firm, particularly for well-prepared lines and natural fibre products.

Global uncertainty reshaping fibre markets
Broader global uncertainty continues to influence sentiment across the textile sector, particularly around synthetic fibres and oil-based inputs.
Rising costs and supply volatility are helping to shift attention toward natural fibres, with wool increasingly being recognised for its reliability, traceability and environmental credentials.

For the last 20 or 30 years synthetics have been seen as cheap and reliable. Right now, they’re neither.

At the same time, tightening global wool supplies and improving international interest continue to support demand for New Zealand wool.

Organic wool and natural fibre demand continue to grow
Growing international demand for traceable and sustainably produced fibre is continuing to create opportunities across the wool sector, particularly within the organic space.

Recent investment into Lammermoor Station highlighted the increasing value being placed on organic wool production and reinforced confidence in the future of natural fibres.

Feedback from international manufacturers also suggests many are interested in further investment to increase their wool processing capacity, despite wider economic uncertainty.

Focus remains on wool preparation
As the market becomes more selective, wool preparation and presentation remain critical to maximising grower returns.

A strong growing season has increased the risk of vegetable matter (VM) contamination in some regions, with buyers placing greater emphasis on well-prepared lines.

While wool growers can’t control global demand, fashion cycles, or currency, they do control what leaves their shed. Managing VM is one of the last levers where effort carries through to the wool cheque. 

Looking ahead
While short-term volatility remains part of the wider global picture, the underlying fundamentals supporting New Zealand wool continue to strengthen.

Tightening supply, increasing demand for natural fibres, stronger international interest and the successful transition to a national auction system are all contributing to renewed confidence across the sector.

As an industry, we’re in a much stronger position than we were a couple of years ago. Investing in multiple initiatives that are bringing benefit to the wider wool industry is a strong focus for us, and while there will always be market fluctuations, there’s growing confidence around the long-term outlook for wool.

Rachel Shearer,
General Manager
PGW Wool