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Property Collection - Welcome lift in wool prices

June 2021

Wool prices have lifted across latest wool sales in both the North and South Islands.

The late May sale in Napier was largely the first since Christmas featuring large quantities of good quality second shears. This offering resulted in spirited bidding from domestic and international buyers, with prices rising by 15 to 20 cents clean. Other wool types followed that lead, which is a positive move for prices that have done few favours for crossbred wool growers in recent times. In early June the subsequent Christchurch sale realised further increases of 10 cents per kilogram clean across all types.

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Stronger demand is coming out of Europe, where second shears are sought after for the carpet and flooring markets. Although China continues its role as the dominant buyer of New Zealand wool, historically procuring between 45 to 55 per cent of the volume sold, Chinese buying power has scaled back by around ten per cent over the past 12 months, with buyers from India taking up that part of that market.

Meanwhile, members of the wool industry have entered the New Zealand Farm Assurance Programme (NZFAP), which was initiated in 2017 by the meat industry to streamline the quality assurance processes farmers use to set standards for their industry. NZFAP accreditation focuses on traceability, sustainability, environment and animal welfare, which are increasingly monitored by global consumers. More than 6000 sheep and beef farmers are already members of the programme, covering the vast majority of woolgrowers. NZFAP quality assurance will now be extended to farmers’ wool, as well as their meat production, from wool businesses signing up to join NZFAP.

 

Grant Edwards

General Manager Wool

  

Read the full edition of the Winter Property Collection here >

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