Media Release – Wools of New Zealand achieves turnaround, reports modest profit

Wools of New Zealand Limited Partnership (WNZLP) has achieved a significant financial turnaround, reporting a modest profit for the 2024 financial year, wool growers were told at the company’s Annual General Meeting.

WNZLP recorded a net profit of $165,000 compared to FY23 ($1.4 million loss) on a turnover of $27.6m (FY23 $27.3m).
Richard Young, chair of WNZLP, which is jointly owned by Wools of New Zealand and Primary Wool Co-operative, says the turnaround shows the company’s strategy is working.
“Wools of New Zealand’s primary purpose is to see farm gate prices increasing for all of its farmer suppliers. Its dual strategy is focused on the efficient transacting of wool through to the international market in ways that give farmers more control over pricing, and driving increased demand through its wool carpets and commercial wool tiles business.
“The last six months have seen wool prices increasing, and while wool prices remain well below
where they need to be, it’s encouraging to see a positive trend.

“Over the past year, strong wool returns have risen by $1 per kilo, reaching $3.50 — almost double the price achieved in 2021. Wools of New Zealand has recently offered growers strong wool carpet contracts at $5 clean per kilo.
“Wool volumes moving through the store network have also accelerated, thanks to rising demand and the reopening of the Napier wool scour, which has helped improve supply chain efficiency.
“We’re seeing the impact of increased demand and reduced sheep numbers. While we can’t take all the credit, our efforts to drive demand through our flooring strategy and raise awareness of wool’s benefits have played a key role.”

John McWhirter, chief executive of Wools of New Zealand, says the result was a significant turnaround, especially given ongoing declining sheep numbers.
“For the first time in many years, demand for New Zealand strong wool has exceeded supply. This shift is creating competitive pressure at auction.  We expect this upward trend to continue, particularly with the first international auction of New Zealand wool through the Natural Fibre Exchange (NFX) auction next month.”