Wool report: Cyclone Gabrielle and China affecting the market

PGG Wrightson's GM for Wool Grant Edwards. Photo / Supplied

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Grant Edwards is the general manager of PGG Wrightson Wool and he caught up with Jamie Mackay from The Country to look at the effect of Cyclone Gabrielle on the wool industry.

Obviously, there are some real issues around getting wool out of wool sheds and power into wool sheds - but the season is well through.

Edwards said that it could have been more difficult for wool growers but a fair degree of the wool had been shorn throughout the flat areas of the Hawke’s Bay and East Coast region.

In the hill country, however, a lot of shearing is still due to take place and accessibility is a big issue - getting shearers in, getting wool out.

Mackay asked about discolouration with the fleece, something Edwards mentioned last time they spoke.

Mackay reckoned anything from North Island sheep recently must be discoloured because of all the rain.

Edwards agreed, saying there had been a lot of yellowing.

There was an upside for will with China coming back into the market stronger, Edwards said.

He’d seen increases in prices of 20 to 30 cents over the last month.

So while there was a way to go, it was helping, as the yellow wool was finding a market, he said.

Mackay wanted to finish on a positive note and mentioned some farmers who were doing stuff on-farm themselves with strong wool.

Edwards said it was a credit to the growers and that PGG was supporting where it could.

Farmers are using their own wool for specific products like homespun jerseys and Cashmere High School in Christchurch is producing wool credit cards.

Wool was a biodegradable, and sustainable product and farmers were picking up on it - the world needed to do the same, Mackay said.

Two major overseas wool customers were in New Zealand at the moment and more were coming, Edwards said.

He said they were worried about the wool supply chain but had growth programmes in place and wanted to get on-farm and talk to farmers.