A direct wool marketing option between New Zealand wool exporters and producers

Abstract

In recent years reports and studies have indicated the need for growers to devise and use alternative raw wool selling options.

Concern from growers about market signals, net returns and handling charges has led one breed society to look into direct selling their wool to an exporter.

It was found that although the system was set up and used by a few growers, the strengthening market influenced growers to remain with the present auction system.

Growers found it hard to break from tradition and accept more control of their clip in the initial stages of wool marketing.

Brokers perceived this other option as being a threat to the established auction system rather than creating a more competitive market for growers to sell their clip.

It is thought that this direct system will be slowly accepted over the next few seasons, once income and feedback advantages can be observed.