New Zealand's wool industry is showing signs of a comeback, with farmers reporting that wool is now making money for the first time in roughly six years. This follows decades of decline in the industry.
The resurgence is attributed to increased global demand for natural fibres, triggered by the rising costs of producing synthetic fabrics. Dave Burridge, national wool auction manager for PGG Wrightson, noted that the raw materials for nylon and polyester have increased in price, leading buyers from countries such as China and India to seek natural alternatives.
In June, New Zealand wool fetched its highest prices in 15 years at the PGG Wrightson national auction, with crossbred fleeces ranging from NZ$6.47 to NZ$6.80 per kilogram, and top-quality fleeces nearing $8 per kilogram. Although prices dipped at the most recent auction on July 30, they remain $2 higher than a year ago.
Major global brands are also engaging with the industry. French luxury brand Chanel signed an investment deal in April with Central Otago’s Lammermoor Station for premium wool production. American outdoor clothing giant Patagonia visited New Zealand in June to investigate wool partnerships, and Turkish carpet manufacturer Kalida Hali made a deal with Wools of New Zealand in May.
A recent trade deal between India, New Zealand's second-largest wool market, is expected to strengthen exports by eliminating tariffs on wool.