While at present levels crossbred wool auction prices remain well short of satisfactory, better colour and style offerings have gained positive traction in the market recently.

As a consequence of their short supply, when presented in the auction room these wools are enthusiastically received and generate strong competition, at least to a certain level of value.

For poorer styles, prices remain underwhelming and the challenge of extracting any reasonable value for these types remains elusive. They are selling, albeit at unsustainable levels. Supply of these wools peaks in January, February and March and their continued progress through the supply chain, has at least avoided building up a large and unwanted stockpile.

After the damage wreaked by Cyclone Gabrielle, the main scour for North Island wool at Awatoto south of Napier remains out of commission, though is on schedule to return to operation by the end of 2023.

Supply chain flexibility is keeping the industry functional as wool otherwise destined for Awatoto is being diverted to the smaller North Island plant at Clive, or to the South Island scour at Timaru. While both scours are doing their best to continue to facilitate the flow of wool, anyone seeking to scour North Island wool can anticipate inevitable delays over the next few months.

Recent results at the early May sale of North Island wool in Napier, increasing on the previous sale, are an encouraging indication that the industry will surmount these difficulties.

We continue to work closely with overseas manufacturers who are focused on allaying concern around supply chain volumes. Since the start of 2023 we have hosted several visits from large and watchful manufacturers. Our international visitors want to meet with growers on farm, understand their perspective, and consolidate relationships. Aligning manufacturers and growers is a positive step, particularly as several of these manufacturers are in the process of significant expansion.

Also encouraging, China continues to increase export volumes, recovering from the last three years to open up borders and resume higher levels of economic activity, emerging from their prolonged covid lockdown.

Grant Edwards, General Manager, PGG Wrightson Wool