Environmental credentials could raise national wool cheque by at least $30 million, says leading exporter - 15 February 2010

‘Green’ consumers are good news for sheep farmers, says the country’s leading wool exporter, New Zealand Wool Services International Ltd (WSI), which this week had its scouring systems rated as sustainable by a strict European Union environmental watchdog.

Increasing international consumer demand for products that minimise impact on the environment should help revive the fortunes of New Zealand woolgrowers by at least $30 million per annum, according to WSI managing director Michael Dwyer.

“With wool only making up 1.7 per cent of all the world’s textiles, as consumer demand for sustainable products grows, wool that meets the criteria should create a supply-demand imbalance in its favour, which, logically, should increase wool prices across the board. 

“Even if prices lift by only ten per cent as a consequence, this would add over $30 million to the national wool cheque,” he said.

To help accelerate that process and capture the benefits, WSI has achieved the European Ecolabel standard for its South Island scour, at Kaputone, north of Christchurch, says Michael Dwyer.

“Ecolabel reinforces the premium value of Purelana, our branded scoured carpet wool. Its environmental credentials will increasingly set it apart in the international market.

“Various countries are developing standards around the environmental impacts of manufacturing processes. With the European Union behind it, Ecolabel will carry weight in many of the markets for New Zealand wool, demonstrating to consumers it is processed with minimal environmental impact. Organic certification is slightly different, relating to how wool is produced on-farm and ensuring its organic status is maintained during processing.

“Wool is a natural product, with many outstanding characteristics that cannot be duplicated by synthetic fibres. The way we produce wool is kind on the environment. New Zealand woolgrowers need to ensure our international customers know that. WSI has achieved the international criteria, which provides us with a marketing advantage that has huge potential to increase the export value of wool scoured at our plants,” he said.  

WSI exports around 40 per cent of New Zealand’s coarse wool clip.

Ecolabel is a consumer standard for a wide and expanding range of products and services, from cleaning fluids to appliances to lubricants to services such as tourist accommodation.

Michael Dwyer says achieving the Ecolabel standard is exacting.

“Ecolabel sets tough criteria. For wool there are stringent regulations over what is extracted when our product is scoured, and what is discharged back to the environment after the treatment of effluent. 

“A few years ago we upgraded the effluent management system at the scour, developing an aerobic treatment process at Kaputone that significantly improves our capabilities. What we now have in place is practically a closed loop system, independent of civic wastewater treatment. While it was a considerable investment, it positions us ahead of demand for environmentally sustainable processing requirements.

“Because our scours use the most modern technology and must meet high environmental compliance standards under New Zealand’s resource consent system, our scour at Kaputone is the only plant in New Zealand that can comply with Ecolabel’s scoured wool criteria with its onsite effluent management system. We believe other scours elsewhere in the world will have great difficulty meeting these,” he said.

Meanwhile, as consumer awareness of environmental concerns increases, WSI is moving to prepare for growth in demand for organically produced wool. 

“In New Zealand standards for certification of scoured wool as an organic textile are set by AsureQuality. These are based on the use of biodegradable detergent, elimination of any contaminants that would compromise the organic nature of the product, removing the potential for cross-contamination of the organic wool, and assurance that harmful residues are not discharged into waterways.

“As with the Ecolabel, our scouring systems at Kaputone meet those standards and have been approved to scour organically produced wool,” said Michael Dwyer. 

WSI owns two of the country’s five operational wool scours, at Kaputone north of Christchurch and Whakatu in Hawkes Bay, marketing and exporting New Zealand wool to around 30 countries. 

Further Information:

Michael Dwyer, John Dawson or Malcolm Ching

New Zealand Wool Services International 

03 357 8700