Wool is set to solve problems that are faced by consumers and brands alike, making the time right for a paradigm shift that transforms the way wool is perceived and marketed.
But it won’t be one entity alone that will make the wool transition.
Everyone operating in the wool sector will need to take heed of the market shifts and engineer their business to better serve the brands that drive demand for wool, Wool Impact chief executive Andy Caughey says.
The recent International Wool Textile Organisation (IWTO) conference in Adelaide put a global spotlight on New Zealand strong wool, its world-leading brands, depth of innovation, and the broad range of initiatives to build demand and value.
Caughey was a keynote speaker at the IWTO conference as part of a wool industry delegation from NZ.
“From an international perspective, we are seeing a significant shift in the way brands appraise and select materials for their products,” Caughey said.
He said as countries assert influence over industries in terms of reporting – the European Union’s Corporate Sustainability Reporting Directive; marketing – the Green Claims Directive; and end of life Extended Producer Responsibility, brands are increasing the scrutiny they put on their value chains and material selection.
As nations regulate away from plastics and synthetic fibres there will be more opportunities for NZ strong wool.
It is NZ’s opportunity to re-educate and reposition and make the transition easy.
“For wool to be future fit, we need to position and evidence its functional and environmental performance in this evolving regulatory and non-regulatory landscape.”
Keeping wool at the table in support of existing brands is essential.
“We need to work with these brands and businesses to understand their reporting requirements and provide information about NZ wool to support their efforts.
Foundational accreditation programmes such as NZFAP can help in the positioning of wool.
“Shifting brands to preferencing NZ wool produced to NZFAP standards is a great start and grower value from wool can be created by supporting brands with farm-specific evidence and examples.”
Brands need to report on carbon minimisation efforts, biodiversity initiatives, community contribution and social fairness.
“The way we craft value add propositions and protect the value of these for growers will determine how effective we are as a sector at lifting wool out of the commodity basket.”
Caughey said a growing number of brands and value chain partners are turning to Wool Impact to help them navigate this new regulatory context.
“We are rapidly advancing our knowledge and services but ultimately it is not Wool Impact that will make the wool transaction.
“We need other wool sector businesses to evolve their capability to meet the changing demands of the market.
“Everyone operating in the wool sector needs to take heed of these market shifts and engineer their business, and the way wool is transacted, to better serve the brands that ultimately drive demand for wool.”
A brand acceleration report due out in June will offer the wool sector insights into these global shifts, opportunities for value and Wool Impact’s focus for the coming year.
Other positive wind shifts have seen wool prices trending upwards, and anecdotal evidence suggests government departments are shifting their procurement decisions to wool in response to the government’s commitment to preference wool.
Wool Impact is laying the groundwork for a bi-annual forum designed to bolster networking and provide targeted support for small businesses that specialise in NZ strong wool products.
Recognising the unique challenges and opportunities faced by these businesses, the forum will function as a networking platform, offering business owners the opportunity to connect socially and share insights from their business growth journeys.
It will also feature a focused workshop element where a panel of experts or guest speakers will address a range of relevant topics, from marketing strategies and sustainable practices to supply chain efficiencies and innovation in wool products.
“The aim of the forum is to provide a platform for people to share challenges and potential growth avenues, creating an ecosystem where businesses can connect, share and learn,” Wool Impact navigator Anna Crosbie said.
Meanwhile Caughey and Wool Impact chair Ross McIsaac attended the Primary Production Select Committee in Parliament this month.
“We are eager for the government to understand that there is no one thing that will revitalise the strong wool sector,” Caughey said
“It’s a many-pronged approach of brand-led innovation, fit within the global regulatory environment, evidencing of wool’s performance, and systems change in the way wool is transacted.”
Wool Impact has also been approached to lead a strong wool reference group, to ensure the ongoing representation of the sector.
The group will be farmer focused and industry led to ensure the momentum behind strong wool continues in the medium term.
