NSW Merino breeder Chad Taylor.
AUSTRALIAN wool growers are being offered 10-year supply contracts with brands via New Zealand’s Zentera Wool Company for the first time.
And a sixth-generation Merino stud in New South Wales, Mumblebone, is the first to secure a rolling 10-year wool supply contract with natural performance apparel brand icebreaker.
Mumblebone owner Chad Taylor said wool markets are often subject to volatility.
“Having a rolling 10-year commitment at an agreed structure gives us stability, allows long-term planning and investment, and strengthens the connection between what we do on farm and the garments that are produced.”
He said Mumblebone had supplied non-mulesed wool to the NZ Merino Company in two three-year contracts that paid between 26-33 percent above auction market rates.
“The stability of a 10-year contract is really reassuring.
“We’ve come to expect great volatility in the wool market, but when you throw into the equation what is happening in Iran and potentially in the Ukraine, there is a lot of uncertainty and these contracts provide a lot of stability,” he said.
“It is something that is great use to us, but we will also be leveraging that to the bank and giving the bank some security of our wool income and that will reflect well at a business level as well, so there are wins the whole way around for us and the brand.”
Zentera chief executive officer Angus Street said the first Australian contract reflected increasing interest from global brands for trusted relationships with Zentera Quality (ZQ) certified wool growers.
“We are proud to bring our contract model to the Australian market and it’s a privilege to be able to connect Zentera growers like Mumblebone directly with global brands, like icebreaker.
“Our ZQ growers are leaders in their field and champion ethical, sustainable and regenerative farm practices,” he said.
“Our contracts provide income certainty for growers, and consistent, traceable fibre for brands. In a market where scrutiny is increasing and fibre choices matter more than ever, that level of confidence for brands is critical,” Mr Street said.
Zentera represents a network of more than 100 ZQ certified growers within Australia, from New South Wales, Victoria, Tasmania, Queensland and Western Australia. It also represents more than 500 growers from New Zealand and the Republic of South Africa.
“Mumblebone is the first, and there will be more to come! We have several other leading growers from Australia that are currently considering long-term agreements with icebreaker,” Mr Street said.
“This reflects the demand for ZQ certified Australian wool, in a market where consumers and brands are scrutinising the wool and products they use more than ever before.”
Smartwool & icebreaker global president Jan Van Mossevelde said 10-year partnerships like the contract are incredibly valuable.
“Each one marks an important milestone for both icebreaker and the growers we work with.
“Australian ZQ-certified growers produce some of the finest merino wool in the world,” he said.
“Their responsible approach to wool production is a key reason we choose to partner with them.”
“We value the connection between the wool we use and the farms it comes from, and we’re proud to invest in partnerships that strengthen that transparency.”
Mr Street said the contracts demonstrate a different way of doing business that can provide long-term security and opportunity for growers.
“As global wool and textile markets evolve, brands and consumers are placing greater emphasis on traceability, animal welfare and measurable sustainability outcomes.
“Every ZQ certified bale is accounted for, every claim is backed by evidence, and every outcome can be measured over time,” he said.
“That’s why our fibre is recognised on the world stage, and why long-term international partnerships continue to grow.”
AWN CEO Rick Maybury said AWN is incredibly pleased to have advised on Australia’s first 10-year contract with icebreaker for Chad and Lou Taylor of Mumblebone.
He said the contract, advised by Brett Cooper, AWN’s Central and Western NSW Regional Manager, delivers long term pricing certainty for the Taylors and reflects the growing confidence and demand for certified wool.
“The Zentera Wool Company contract model has been hugely successful for growers in New Zealand, and we see real opportunity for our Australian growers to benefit from it as well.”
The Mumblebone team, from left, Chad and Lou Taylor with Ed Johns and Josh Walter.
Well done Team Mumblebone