Merino growers pull socks up
The largest global supplier of wool socks in the active outdoor market wants to step up its wool contract with New Zealand merino growers, worth more than $100 million the last nine years. A top executive team from the United States company SmartWool will meet wool farmers at a North Canterbury function centre on Monday reports Stuff.
The company has indicated it will extend orders for New Zealand- grown merino and mid-micron wool in its partnership with The New Zealand Merino Company (NZM) from double-digit growth projected each year for the next three years. SmartWool will go into more detail at the meeting about its increasing demand for 18 to 26 micron wool and give farmers volume and price projections for its wool requirements to meet growing orders.
NZM chief executive John Brakenridge said SmartWool was a major buyer of merino and mid-micron wool and its commitment to build the contracts sent a positive signal to farmers. He said the contract model was a proven template for the wool business. “Around 20 per cent of the merino and mid-micron clip between 18 and 26 microns will be in this one contract. It’s a valuable contract. The key thing is it provides some certainty in the future and is encouraging people to grow the wool.”
Brakenridge said merino farmers had been shaping their wool business to the micron dimensions needed for the active outdoor market and would continue to do so with SmartWool looking to grow the business. “Direct contracts between our growers and brand partners like SmartWool, where both parties benefit, are unique. SmartWool’s forward commitment to growers will further encourage the production of more wool that the market demands.”
Tags: John Brackenridge, Merino wool
