Triggered by the Korean War in the 1950s, overseas demand for the product soared and New Zealand – with its abundance of sheep farms – enjoyed one of its greatest periods of economic growth.
Fast-forward to today and the picture for wool is very different. Enticed by cheaper alternatives such as synthetic carpets and polyester clothing, consumers globally have drifted in mass away from wool products despite their proven advantages.
New Zealand’s sheep farmers have suffered the consequences of this. What once was a highly profitable venture collapsed to a point in recent years where sometimes the revenue from the strong wool (the coarser fibre, distinct from fine wool like Merino) did not even cover the costs of shearing the sheep.
Sheep numbers in NZ have plunged from a peak of about 70 million in 1982, to about 23 million last year. Some sheep farmers have even looked to shift to “self-shedding” sheep breeds to reduce costs.
More recently, wool prices have picked up, but the reality is that any road back to the privileged position wool once held is likely to be a long and difficult one. There are undoubtedly positive signs emerging, principally around the choice for global consumers between natural, sustainable fibres such as wool and products manufactured from crude oil and petrochemicals.
Closer to home, there are also reasons for optimism.
New Zealand’s wool industry got a welcome boost earlier this month when the Government announced(external link) that government agencies will be directed to use woollen products in the construction and refurbishment of government buildings “where practical and appropriate”.
The new procurement requirements will apply to the construction of government owned buildings that cost $9 million and more, and to refurbishments of $100,000 and more. The requirement will apply to about 130 agencies, and products may come in the form of carpet, upholstery, insulation, and acoustic panels.