The New Zealand strong wool market received a major boost this week, with the South Island Strong Wool Indicator lifting 46 cents and a 98% clearance at auction. For growers, it was a welcome shift after years of tough conditions, and the auction room buzzed with energy as buyers competed fiercely for wool.

Rachel Shearer, General Manager of PGG Wrightson Wool, spoke with Jamie Mackay on The Country about the turnaround.

“There was some real tension and buzz in that auction room yesterday and we’re absolutely delighted for our growers. They certainly deserve it. But as I always say, there’s still a way to go and we need to continue this momentum upwards,” Shearer said.

Global factors driving change
Significant global shortages of wool are underpinning demand, with buyers forced to fill immediate orders, particularly into China.

Shearer pointed to several factors feeding into the stronger market:

• Recent positive sentiment from the Nanjing wool market in China, considered the most optimistic since 2018.
• New EU legislation favouring sustainable fibres over synthetics.
• Declining global supply, with Australian sheep numbers at their lowest since before the First World War.

“All of these elements point to a classic supply and demand situation which can only be good for our hardworking growers,” Shearer explained.

International buyers turning to New Zealand
One of the most striking developments from the Christchurch auction was the scale of Australian buying activity. An Australian exporter purchased nearly half the value of wool sold at the sale, including New Zealand crossbred wool, a type not widely available in Australia.

“The fact that Australians are now buying up New Zealand crossbred wool shows how much international buyers are placing value on what our growers produce,” Shearer noted. “At times, the bidding was heated, with exporters pushing each other hard to secure lots. It was exciting to watch.”

Looking ahead
While Shearer was clear that challenges remain, she expressed optimism that strong wool is entering a new phase of opportunity. Multiple positive stories, from industry partnerships in China to new sustainability legislation overseas, are creating tailwinds for the fibre.

As Jamie Mackay concluded, demand levels “not seen in a generation” are something the sector can take confidence from.