Two of New Zealand’s leading wool companies, Wools of New Zealand and PGG Wrightson (PGW), are exploring possible ways to consolidate aspects of their wool logistics operations.

Entering into discussions to consider sharing logistics where appropriate is in response to the over-capacity across New Zealand’s wool logistics infrastructure following a long-term decline in production volumes, which has driven up operating costs.

By exploring ways of working together, Wools of New Zealand and PGW aim to reduce costs, improve asset utilisation and help secure a stronger future for wool growers and the sector.

Both companies continue to independently operate and compete for wool, ensuring farmers retain full choice over who they choose to transact their wool with.

Wools of New Zealand chief executive John McWhirter said the discussions are about two companies taking the lead to look to deliver the structural change the industry needs.

“As a 100 per cent farmer-owned company, our growers expect us to be proactive in leading change that supports a strong future for New Zealand wool.

“Coming together to seek solutions is an important step toward a more sustainable and competitive future for New Zealand’s wool sector, a key contributor to the country’s economy.”

PGW Wool General Manager Rachel Shearer said the discussions make sense at a time when the wool supply chain is under pressure, illustrating their continued faith in the fibre and its future.

“Farmers are facing rising costs, and like them, we must control our costs too. Continuing to support a large, under-utilised infrastructure is simply not sustainable. It doesn’t serve our farmers or shareholders well.

“This joint approach represents a practical example of industry leadership to discuss how to reduce duplication, improve efficiency and ensure the infrastructure that remains is fit for the future.”