Regenerative sheep farmers could muster an above-market pay cheque for their sustainable wool clip, thanks to a new industry deal.
Wools of New Zealand signed a new contract to supply American-owned company Keraplast, based in Ōtautahi, with hundreds of tonnes ofstrong wool over the next five years.
Keraplast extracts keratin, the main protein in wool, that was then used as an ingredient in haircare, skincare, nutraceuticals and medical products.
Wools of New Zealand chief executive John McWhirter said the contract linked growers to high-value end uses, rather than the traditional textile markets based on commodity prices, to improve returns.
The new super-premium wool contract pays 40% or $2 a kilogram above market pricing for 2025, at $6.88 per kilo clean, and prices will increase $0.50 per kilo each year.
Keraplast chief executive, Howard Moore, said the deal was about shoring up the supply of low-carbon New Zealand strong wool.
“We really do want to encourage the supply of regeneratively-farmed wool, but we also do feel it is an obligation from the company for us to share in the value that we are adding to wool, sharing that with our farmer suppliers.”
Moore said the wool-only company was committed to net positive, a business strategy about creating more positive impacts than negative on the environment, society and the economy.
He said its industrial American customers were very focused on sustainability.
“We sell to industrial customers, and these industrial customers are concerned about their carbon footprint,” he said.
John McWhirter of Wools of New Zealand (left) and Howard Moore of Keraplast.
“And so we are able to demonstrate to these industrial customers of ours that we are doing our bit to source wool that’s got a reduced carbon footprint.
“That commitment to sustainability through using regeneratively farmed wool does help us with our customers.”
Overseas competitors making products from keratin instead sourced the protein from chicken feathers, he said.
Moore said its 40 employees were working towards processing up to 100 tonnes of wool each year at its new factory near Hornby.
Since around August, wool prices in the North and South Islands have increased, exceeding levels in 2023 and 2024.
However, the national sheep flock was continuing to decline, and major broker PGG Wrightson announced last month it was going to end its historic North Island wool auctions operation from May.
