AgResearch-developed technology that can prove the origins of New Zealand carpet wool is being used to try to boost record low returns to wool growers.
Rural services company Elders has bought the traceability technology and will roll out a new luxury carpet brand as part of its deal to supply
large American carpet retailer CCA Global Partners.
The technology involves putting a tracer fibre into the wool that can be detected by a hand-held scanner.
The system is called Verifi TT and is understood to be a world first. It allows the wool to be authenticated as Elders-supplied New Zealand fibre and traced to the carpet retailer.
Elders says many carpet manufacturers claim to use New Zealand wool when their product is made from a mix of wools.
As a result New Zealand farmers have been missing out on earning a premium for their fibre which is considered to be the best in the world.
Verifi TT was first aimed at the apparel industry and was shown at New Zealand Fashion Week by AgResearch last year.
It has been picked up by venture capital company VTT Marketing, which has done the Elders deal and is also talking to wool clothing labels about the system.
Strong or carpet wool prices have languished at record lows for months and many farmers are shifting to meat breeds of sheep or cattle as a result.
Elders announced the deal to directly supply CCA Global Partners and five key carpet manufacturers in January.
Meanwhile, rival PGG Wrightson's Wool Partners International initiative is also aimed at consolidating the fragmented wool industry and building a superior and more valuable New Zealand wool brand.
WPI has just completed a month-long roadshow lobbying farmers to join its co-operative and supply wool directly to it.
But Federated Farmers meat and fibre chairman Bruce Wills said: "They're not going to get an awful lot of traction with farmers until we see some dollar results on the bottom line."
Asked when farmers might start to see the benefits of the traceability technology, Elders managing director Stu Chapman said the new 100 per cent New Zealand luxury wool carpet brand would be launched through CCA early next year.
