27 Jun 2009

Demand for organic wool outstrips supply

11:00 am on 27 June 2009

The head of a new strong wool marketing venture says New Zealand does not appear to have enough organic wool growers to cope with an increased demand from the United States.

Wool Partners International chief executive Ian Abercrombie says the company's export arm has established a supply arrangement with a US importer, but has been unable to find enough wool to meet its needs.

The American customer is paying $1 per clean kilogram above market prices.

Mr Abercrombie says because of the higher return, many farmers are having flocks shorn only once a year instead of six-monthly, with the result that the wool is more difficult to process.

To tackle this, the importer is also offering a 50c per kilo shearing incentive, which Mr Abercrombie says has increased interest from farmers.

Ian Abercrombie says conversion to organic wool farming can take between 18 months and two years. Organic wool imported into the US must meet strict certification requirements.

At present, only 20 of the 70 organic growers in New Zealand have reached the standard required by the United States, while the remainder meet European standards, he says