Wool Impact

Growing demand and restoring profitability to New Zealand’s strong wool growers and sheep farming communities, are goals that are front and centre for Wool Impact. Formed in mid-2022, with the support of the government, WoolWorks, and New Zealand’s leading meat companies, Wool Impact advocates for increased demand and value. A top priority is to remedy the disconnect between wool growers in New Zealand and the brands – both local and international – that ultimately use their fibre.

This disconnect is a significant barrier to realising the full potential of Aotearoa’s wool industry. New Zealand's strong wool growers have long been known for producing some of the world’s finest quality wool. Through collaborations with growers, brands, and industry leaders, Wool Impact is working towards a timely renaissance for strong wool.

Wool Impact’s approach begins with a deep understanding of what brands, both in New Zealand and abroad, value in their material choices. “We need to engage these brands to refine the positioning and evidence needed to make New Zealand wool the preferred choice in a competitive marketplace,” says Wool Impact’s CEO Andy Caughey.

The focus is on brands that develop the wool products growers rely on, and drive innovation for the industry. Bremworth’s recent $2 million investment in marketing to elevate wool as a flooring option is a timely example of the importance of having great brands behind wool.

New Zealand is home to numerous innovative brands that work with wool, many of which have bold growth ambitions. Wisewool, Honest Wolf, FLOC, and Woolchemy, all draw on the unique qualities of wool to develop branded offerings in categories from furniture to feminine care. Furthermore, companies such as Wool Source are driving pioneering advancements in wool-derived pigments, powders, and particles.

Recently, Wool Impact brought together a group of innovative wool brands to share ideas and discuss what’s most useful in enabling their expansion. The collective sentiment was clear: as these brands grow, so will the demand and value for New Zealand wool and the farmers who produce it.

“With around 85% of New Zealand’s strong wool destined for international markets, and some of New Zealand’s larger wool brands such as Bremworth and Godfrey Hirst setting their sights on export growth, we need to expand our appreciation of global perspectives on wool, and the brands investing in the future of the fibre,” says Caughey.

Creating Direct Sales Relationships

Doing things the way they’ve always been done rarely leads to different outcomes. A key priority for the organisation is leading the wool sector toward new sales pathways that create, protect, and deliver value to wool growers.

One of Wool Impact’s primary objectives is to generate new demand for New Zealand’s strong wool by developing a wool offering that adds tangible value to brands and their customers. The time is right for this shift. Globally, there is a growing recognition of the need for sustainable alternatives to plastic, and natural fibres like wool are increasingly seen as viable solutions. However, wool’s natural and biodegradable status, while beneficial, is not sufficient in a world that demands evidence of impact.

Currently, most of New Zealand’s strong wool leaves the farmer’s line of sight the moment the wool bales are trucked off the farm, losing the unique attributes of each farm to a commodity system. This prevents brands from selecting and rewarding farmers who are using best practices that are good for the world and good for their customers.

Wool Impact engaged Gensler, the world’s leading architecture, design, and planning firm, to conduct a market study focused on wool’s role in product development within the architecture and design (A&D) industry and provide strategies for growth. Gensler’s strong commitment to sustainability and expertise in product development were key factors in selecting the firm. As architects and designers, specifying sustainable building materials is one of their most substantial opportunities for impact, and the same applies to the manufacturers crafting textiles, flooring, and more.

“Few materials have the potential to actively improve the environment in our current climate crisis. New Zealand’s world-leading farming practices, known for their stewardship and expert land management, can contribute significantly to improving ecosystem health, including climate challenges,” says Caughey.

According to Caughey, the key to unlocking value from closer brand-grower relationships will be having a deep understanding of wool’s impact throughout the value chain and selecting supply chain partners committed to value creation and transparency.

Gensler is working closely with Wool Impact to translate the inspiring story of New Zealand’s responsible wool industry into meaningful business metrics. These metrics support manufacturers in making informed decisions when sourcing raw goods, generating stronger business paths for growers, and supporting the sustainability efforts of the manufacturers.

“We see a clear pathway to value, when wool is positioned as a solution to brands’ climate and broader sustainability ambitions that drive attribute and farm-specific sourcing of wool. It’s not a simple fix – the area of impact assessment is dictated by Life Cycle Assessment methodologies, while the science is evolving rapidly – however, we know that for growers to have confidence in the future of wool, they need to see new partnerships between brands and New Zealand. Overall, this will drive increased demand and value for New Zealand’s strong wool,” says Caughey.

The Time is Right for New Zealand Wool

Global brands see that natural fibre can be the solution they are looking for in the face of anti-plastic backlash. Wool’s natural and biodegradable status is good but often not good enough to support the positioning and reporting needs brands face.

“We need the supporting evidence of product and environmental performance. That’s why we’re supporting the New Zealand Farm Assurance Programme (“NZFAP”) for wool, who have undertaken a carbon footprint of strong wool, and are substantiating how wool contributes to healthier indoor environments and the well-being of people,” says Caughey.

These efforts continue to be crucial for substantiating wool’s environmental and performance credentials, making it an attractive option for global brands looking to align with sustainability. Most strong wool products today are used in the built environment. The building sector is fixated on carbon metrics for good reason given the significance of the sector’s environmental impact.

“We’re supporting brands who are tackling these challenges in a way that positions wool best, while also exploring more holistic approaches to impact measurement. We know that emissions are not the full wool story – farming offers so many eco-system benefits we need to advocate for a more balanced view and reporting metrics,” says Caughey.

Forward Motion for the Sector

Rebuilding New Zealand’s global reputation as the world’s best wool producer requires our sector to work together more. Earlier this year, Wool Impact entered a strategic alliance with Campaign for Wool to create stronger synergies, accelerate key projects, and avoid duplication of effort. “We’ve been criticised as a sector of lack of cohesion, so one of my key goals is to change that. We want to actively work with others who share a ‘value for growers’ mindset to coordinate activity in a way that improves impact and reduces duplication. We’re getting constant feedback after the workshops we’re running, whether they’re NZFAP, non-woven or brand growth focussed, that it’s so beneficial getting in the same room – that’s positive progress” says Caughey.

“Aside from the initiatives and activities that impact the work we deliver, our real inspiration comes from the regular engagement we have with the wool industry – the growers and individuals at the heart of the wool sector, who drive ambition and determination for this industry every day. This engagement and meeting wool growers and individuals at the heart of wool production and preparation reaffirms Wool Impact’s conviction that strong wool is well placed for a timely renaissance and determination to change the fortunes of woolgrowers,” says Caughey.

Wool Impact is a partnership between the New Zealand government, investing $4.5 million through their Sustainable Food and Fibre Futures fund, alongside like-minded sector investors such as WoolWorks, Silver Fern Farms, Alliance Group, ANZCO, AFFCO, and Progressive.