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10 September 2024
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Wool
Wool Street Journal

From New Zealand to Norway - the partnership taking NZ merino to the world

Along the Leslie Hills Road in North Canterbury is Barcaldine farm. As the crow flies, you’d be able to pinpoint it pretty much directly between Waiau and Hanmer, and it’s this ideal ‘location, location, location’ that has enabled the farm to form an incredible partnership with Devold of Norway - a wool garment brand 18,000 kilometres away, with international acclaim for their high performance products and sustainable ethos. 

“At 2600 hectares, the property runs a 70 percent sheep to 30 percent cattle, of around 7500 stock units and because the majority of the farm is hard hill, it’s quite well suited to merinos,” says Chris Nicolson.  

The future generation, from left to right, Elsie (4), Archer (5) and Sylvie (6 months).

“Barcaldine has been a part of the Roxburgh family since 1945 and today the farm is run by Hamish Roxburgh, a permanent shepherd Deegan Devree and myself. Emily and I are the third generation to take the reins - along with our children Archer (5), Elsie (4) and Sylvie (6 months) - and we are really grateful to Hamish and Grace for the opportunity to be a part of this incredible place.”

And thanks to PGG Wool, Barcaldine have been able to lock in a highly-sought after partnership with Devold, who offer them fixed priced contracts for their wool. This means Chris and his team know exactly what they are going to be getting over a set period, giving them price certainty in an often uncertain market. 

PGW Wool Rep, Peter McCusker with grower Chris Nicolson discussing a mob of merino ewes in for shearing.

“The farm has worked with PGW for generations and the relationship since I have been on the scene has been great. Peter McCusker is our wool rep and he does a fantastic job. He is a great all round sheep man and his knowledge is very valuable,” says Chris. 

“The feedback we get is great and the lines of communication are always open which is much appreciated. Even going through the wool store and hearing what other people are doing and achieving is good for our business, as it helps us to understand what we could accomplish and how far we can take it.”

Chris remembers what it was like before signing up with Devold, with their wool being of a traditional style, and the whole clip used to go to auction. But that type of merino had its challenges in the North Canterbury climate and the decision was made to move away from the style of sheep and more into an easier care, higher micro sheep with a bit more grunt. 

Merino ewes in the yards for shearing at Barcaldine in North Canterbury.

And with a change of wool, Chris and the team wanted more security with their wool clip. So Peter suggested Devold and organised Craig (Smithy) Smith from Devold NZ to come out and talk the Barcaldine team through it. They ended up signing up the majority of their fleece with the merino clothing brand and as the saying goes, the rest is history. 

“It was certainly a very sound move financially, but we have also been nothing but impressed by Devold and the business model they have created. It really is exciting to be a part of the frequent get-togethers, where growers can rub shoulders with each other, hear from the crew in Norway and catch up on what markets they are supplying, as well as any new innovations they are working on,” says Chris. 

“The whole system is so aligned and in house we feel very fortunate to be a part of it. We are looking forward to seeing what the future may hold!” 

But it’s a two-way street of course, as Devold is just as thrilled with being able to secure the best merino in the world right here in the South Pacific. 

Craig (Smithy) Smith from Devold NZ at the PGW Wool Christchurch Woolstore viewing a sample of the Barcaldine merino wool.

“The wool in New Zealand is really consistent,” explains Smithy, General Manager and ‘Wool Guy’ of Devold NZ Ltd. 

“Our company ethos is to strive for quality in everything we do and everything we make, so we have to buy the best wool we can. Wool is a bit like wine in that it is controlled by climatic conditions (and feed) so while it can fluctuate year-to-year in New Zealand, it’s not as dramatic as compared to somewhere like Australia - where the weather goes from one extreme to the other.” 

Founded 173 years ago by Ole Andreas Devold who made beanies, scarves and gloves for the Norwegian fishermen, today the Devold brand is global, specialising in outdoor active merino clothing. And how they differ from other manufacturers is that they are fully vertical - in that they buy on a forward contract basis. 

With wool commodities there are usually a lot of people in between the farmer and the brand, but because Devold are striving for absolute superiority in their wool, they provide a fixed price directly with their growers - so they know what they are getting paid and Devold know what they are buying.

Devold strives for absolute superiority in their wool.

“The reason we do that is because we base everything around quality and if we don’t know the quality then we can’t make good garments. We also pay a higher premium for our wool, above the commodity price, because of the specifications we set for the wool we require,” says Smithy.   

And there’s no question this practice is working for the company. When they were buying processed wool, for every 100 garments being made, on average 15 would be rejected by consumers or by the production floor. Now that they have gone direct to growers, the rejection rate is less than .5 percent. 

“I believe the wool industry is too far removed from the grower. When it comes to merino, 80 to 85 percent is sold on the auction system and the grower has no idea where it goes, and the brand doesn’t know where their wool has come from,” says Smithy. 

A shearer hard at work at Barcaldine in North Canterbury.

“So we know exactly where our wool is being shorn, and through our partnership with PGG Wool and our growers, we’re able to trace its journey from the farm to the wool store and all the way to Lithuania where the clothing items are made.” 

And when you become a part of the Devold family as a grower, you know exactly where your wool is going. In fact, most have seen the end result with their own eyes. 

“We have taken two tours to Europe, so our farmers can follow their wool through the pipeline so to speak. We went to the factory to watch the production lines and to the head office in Norway where they met our whole team. They also got to see the wool garments with their own label on it and I tell you what, many tears of pride were shed,” Smithy says.

“Traditionally, once you’ve shorn a sheep you put the wool on the truck and will never know where it’s gone. But not with us. Our sheep to shop programme is 100% traceable and we love sharing our growers stories with those who buy our merino garments.” 

Peter McCusker, PGW Wool Rep, checking the quality of wool from a merino fleece at Barcaldine.

With such a strong bond between grower and brand, you can understand why those in the ‘inner circle’ would be protective of the partnership. And as Smithy notes, they don’t take it lightly who they bring into the Devold family, so they’ll always get approval from everyone involved before bringing in more growers. And working alongside PGG Wool has definitely contributed to the overall success of the venture. 

“We believe in Peter McCusker, Dave Burridge and the quality of the growers they represent. They are a wealth of knowledge and not only add value to farmers like Chris but are ultimately an extension of our brand. 

“The wool we want is very particular and I know it is what drives them to always deliver.”

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