New Zealand's Present Wool Industry
A country abundant in sheep, New Zealand is the world's largest producer and exporter of crossbred wool. It trails behind Australia being the largest exporter of all wool. More than 220 companies in New Zealand are registered as wool exporters although some are not exporting actively and are instead engaging in local wool production and distribution.
The top 20 exporters account for 75 percent of all wool that New Zealand exports around the world. Total production amounts to almost hundreds of thousands of tonnes in which a majority is exported. In the local wool business environment, sheep farmers are now selling wool directly to private buyers and end users rather than going to middlemen or selling wool through auctions. That is because farmers are eager to establish relationships with processors and end users so they can receive direct information and feedback. From these, they could modify wool specifications to the requirements of the market.
To ensure quality, all of New Zealand's wools are tested before selling at accredited testing facilities. The facilities provide objective measurements of the product's important commercial qualities such as yield, moisture content, fibre diameter, length, colour, strength, and bulk. Currently, gains in productivity and efficiency in the field of agriculture, including wool production, have outshone all other sectors of the national economy.
Sheep farmers also grabbed new market opportunities after adjusting to the removal of subsidies and the deregulation of New Zealand's economy in 1984. Because sheep and cattle numbers fell by 25 percent during that time, farmers have diversified their trade. Now, they continue to respond to challenges by adopting new technology, improving livestock genetics, and increasing their farming businesses' scale. They also responded to favourable market signals by adapting their lands to suit areas of good profitability.
