PGG Wrightson’s International Sales and Marketing arm Bloch & Behrens has been at the sharp end of the COVID pandemic, with numerous and multifaceted challenges at every point in the supply chain. Wool sales were massively disrupted, with scouring on hold during New Zealand’s lockdown. Our customers in the United Kingdom and Europe were locked down at the same time, with factories shut and business at a standstill.

Because shipping from New Zealand to Europe takes six to eight weeks, Bloch & Behrens’ customers were still receiving wool during their lockdown period, creating stockpiles at the port or in the mill. This, combined with limited new orders and delays to existing yarn and product orders, meant most customers faced serious uncertainty around cashflow.

One of Bloch & Behrens’ strengths with its loyal and well established customer base is that with each of our customers we have found ways to tailor solutions and help them through this unprecedented period, therefore enabling them to honour their contracts. We have increased flexibility around the delivery of existing shipments, while occasionally allowing slightly longer payment terms. We have successfully done this without affecting our growers with contracts, which in turn has ensured growers have been getting paid without delay.

Working with our international customers we managed to sign up some very good new business, which enabled us to offer fresh lambswool grower contracts for 2021. These contracts proved to be very popular, and provided substantial premiums compared to current auction levels.

We are pleased to have turned a challenging situation into an opportunity to cement our relationships with key customers, and protect the interests of our growers and our contracts.

Palle Petersen

General Manager

Bloch & Behrens Wool (NZ) Ltd