In a recent interview on The Country, Rachel Shearer, GM for Wool, spoke with Jamie Mackay about the latest trends in the wool market. While strong wool prices have surged over the past six months, a slight correction at the latest South Island sale suggests that buyer resistance may be emerging at these new levels.

Exporters are reporting that key markets, particularly India and China, are beginning to push back on the higher prices. The market surge was largely driven by supply and demand imbalances, with declining sheep numbers limiting available wool. Now that prices have risen, buyers are reassessing their willingness to pay, which could slow further gains.

Despite this, demand for New Zealand wool remains strong in certain sectors. One of the biggest users of strong wool, Danspin, is seeing increased orders for wool carpet yarn, driven by an unexpected source—the cruise ship industry. Despite the downturn in travel during COVID, the industry is bouncing back, and wool carpets are proving to be a sought-after material for new and refurbished vessels.

One potential game-changer for the New Zealand wool industry would be securing the Kāinga Ora contract for wool carpets in public housing. If successful, this deal could provide a significant boost for sheep farmers while delivering health and sustainability benefits to New Zealand homes. Increasing demand—both domestically and internationally—remains key to sustaining price improvements and ensuring long-term growth for the industry.

One of the biggest surprises in the wool market recovery has been the sharp rise in prices for bellies, pieces, and even dags. During COVID-19, these wool types were nearly worthless, fetching around 40 cents per kilogram. Now, prices have surged as high as $2.40 per kilogram, making it well worth the effort for growers to bale and sell their oddments.

The PGG Wrightson / Vetmed National Shearing Circuit Final is set to take place at the Golden Shears, with Southland’s Nathan Stratford among the top contenders. Despite a 70% decline in sheep numbers over the past 40 years, record entries for the event highlight the resilience and passion of the shearing industry.

Rachel Shearer and the PGG Wrightson Wool team will also be attending the Wānaka A&P Show next weekend, providing another opportunity to connect with growers and discuss the latest market trends.