New Zealand Wool Hits 15-Year High as Global Demand Lifts Prices Despite July Dip
Updated
Updated · The Guardian · Aug 7
New Zealand Wool Hits 15-Year High as Global Demand Lifts Prices Despite July Dip
3 articles · Updated · The Guardian · Aug 7
Summary
Crossbred wool fetched NZ$6.47-NZ$6.80 a kilogram at New Zealand’s June national auction, the highest levels in 15 years, returning some farmers to profit after roughly six loss-making years.
Rising oil prices and higher costs for synthetic fibres such as nylon and polyester have pushed buyers in China and India toward natural wool, while global supply remains tight.
The rally has drawn major buyers: Chanel invested in Central Otago producer Lammermoor Station in April, Patagonia explored partnerships in June, and Turkey’s Kalida Hali struck a May deal with Wools of New Zealand.
Prices slipped at the 30 July Christchurch auction after some buyers had already filled seasonal commitments, but wool still trades about NZ$2 a kilogram above year-ago levels.
The rebound comes after decades of decline that cut New Zealand’s sheep flock from more than 70 million in the 1980s to just over 23 million; farmers now see added support from India tariff cuts under a new trade deal.