More than 12 million Americans will soon be wearing New Zealand Merino wool socks while pursuing outdoor activities.
Merino New Zealand has signed a contract with a United States buyer that will be worth about $14 million in export sales.
The company has just signed a three-year deal with US-based Smartwool,
to supply and manufacture 12.5 million pairs of Merino wool socks. The socks will be sold to skiers, runners, cyclists, triathletes, hikers and walkers. The US ski team wears Smartwool socks.
Merino New Zealand's chief executive, John Brakenridge, said yesterday that the deal was a significant one for the New Zealand Merino industry.
"We have been able to lock in prices for our growers for the full three years at a 10-year high," he said.
"This will allow growers to plan with confidence for the future.
"The fibre is at the stronger edge of the clip in an area difficult to market."
He said the contract could absorb New Zealand's total production from this part of the Merino clip over the three years.
It should also expand the demand for finer New Zealand Merino from the wider adventure clothing sector, he said.
Marlborough farmer and Merino New Zealand Board member Ron Small said the contract was great news for the local Merino industry.
- NZPA
