30 Jan 2009

Wool competition intensifies

1:00 pm on 30 January 2009

Competition in the New Zealand wool industry has intensified, with the announcement of a new marketing venture for carpet wool.

Rural servicing company Elders has launched a Wool Marketing Enterprises venture with the aim of increasing demand and profitability for New Zealand strong wool in the US carpet market.

Elders has signed an agreement with the world's largest carpet retailer, CCA Global Partners.

Elders Rural Holdings managing director Stuart Chapman says it will provide an integrated supply pipeline from 800 wool growers to retail stores.

He says the aim is to reverse a decline in demand for strong wool and increase the return that growers get for their clip.

The move will involve one of the biggest New Zealand wool exporters, J S Brooksbank, and a joint venture with growers.

Mr Chapman says the Primary Wool Co-operative will compete with the Wool Partners International venture formed by PGG Wrightson and another farmer co-operative, also to market strong wool.