Wool was king, and sheep were a true dual-purpose animal.
Today, strong wool makes up just 1-2% of gross farm income.
It’s become little more than an animal health treatment, rather than a value-adding enterprise.
The national sheep flock is now about one-third of what it was at its peak in the 1980s – and our influence in global markets has similarly dwindled.
I don’t want to rehash old grievances, but to comprehend what’s next for us farmers and the wool industry, we must understand how we got here and what we can improve on.
Synthetic fibres rose in the 1970s, capturing market share with convenience and low cost.
The collapse of the Reserve Price Scheme in 1991 removed the price floor, exposing growers to full competition with synthetics.
Prices fell and kept falling as the industry failed to adapt.
The traditional supply chain couldn’t deliver value to farmers, and relying on bulk commodity demand became folly.
Fragmentation remains one of our biggest weaknesses.
From farm to consumer, wool is handled, blended and traded repeatedly; margins are clipped at every stage, but little is reinvested in building demand or brand.
Most farmers have no idea where their wool ends up or what it becomes.
Blending removes provenance, making quality, traceability and any associated premium almost impossible.
Some have taken control, vertically integrating and creating their own brands – producing everything from high-end upholstery fabrics to luxury acoustic panels.
It’s inspiring, but these efforts are small compared to the 100,000 tonnes of strong wool we produce each year, most of which still leaves New Zealand as a bulk commodity.
We produce 10% of the world’s strong wool, and when prepared well, it’s the best.
The raw product and the skills are here – what’s missing is a system designed to return value to the farm gate.
Reform must start with the consumer and work backwards, building a value chain that works for farmers, not just the intermediaries.
With all of that said, there is hope.
Wool Impact is backing innovation and commercial partnerships to lift strong wool into high-value markets. With government and industry co-funding, it’s helping turn R&D into real-world products.
Wool Research Organisation of New Zealand is investing in long-term science, creating new materials and technologies to drive future demand.
Campaign for Wool is lifting wool’s profile with consumers, promoting its natural, renewable story.
Government support is helping bring industry players together for the first time in decades, building a united front to drive value.
But none of this will make a difference without farmer engagement.
We must turn up, understand the issues and support those pushing for generational change.
Despite the challenges, the future of strong wool still holds promise.
I hope my children can create those same fond memories in the shearing shed as I recall.
We had the passion and enthusiasm for our wool, and there was excitement and buzz at shearing time.
A series of farmer workshops is planned for Southland and South Otago to explore these investments and the future of wool.
The change-makers will be there.
Will you?
Wool Opportunity workshops
Federated Farmers meat and wool chairman Richard Dawkins will join other farming and wool industry leaders at strong wool workshops in Otago and Southland next week.
Wednesday August 27
Waimahaka Community Centre, 9.30-11.30am
Mossburn Community Centre, 2.30-4.30pm
Thursday August 28
South Otago Town & Country Club, Balclutha, 9.30-11.30am
Middlemarch Community Centre, 2.30-4.30pm
