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Textile Shift Needed for Wool Revival
The future of New Zealand's wool industry is at cross roads.
After thirty years of sheep cockies receiving declining wool prices they last year revolted against their wool levy payment and for the first time in New Zealand's history they voted it out. The ramifications have been swift and severe- no more money from meat and Wool NZ for wool marketing, and wool research teetering on a knife edge.
The Government response has been to set up a Wool Taskforce, which reports soon.
But the future of the wool industry really doesn't lie with the famers. The farmer is producing a commodity, which unless made into something that people want to buy, is worthless. Added to that is the fact that the value of wool to the New Zealand economy will continue to decline unless value is added to the commodity. It's a bit like continuing to ship out thousands of tones of logs for another country to make into housing and furniture products and them capturing the added-value of jobs and export dollars.
Yet on the positive side of the ledger environmentally-friendly natural fibres are the future. There is an insatiable demand in the world for natural products from the natural environment, and wool fits the profile wonderfully.
Even the prince of whales is urging consumers to embrace wool as the natural fibre for a sustainable future. "Wool is a fibre even the most brilliant boffin in the most high tech laboratory could never create", Said the Prince as he explained the natural, sustainable and bio-degradable qualities of a fibre that has evolved in harmony with mankind itself. "Humanity must realise it is unable to replace nature".
The Prince of Whales, himself a sheep farmer at his Highbury Estate in Gloucestershire, urged manufacturers, retailers and consumers to reconsider wool as an alternative to the 'landfill fibres' that have come to dominate certain sectors of modern lifestyle.
And as a bitter cold snap in the northern hemisphere has consumers once again reaching for a woolly garment, fashion buyers are heralding the re-birth of the natural fibre despite recession woes still hanging in the air. The British Retail Consortium had reported its strongest December year-on-year sales in more than five years, with total sales up to 6 per cent against 1.4 percent the year before.
So, what has to change in New Zealand to turn around the plight of the wool industry? The answer lies in a market-Led export strategy that recognises New Zealand's textiles sector is crucial to the future of the wool industry. This doesn't sound too radical a proposition, yet it would be a wool industry solution that has not been pursued before.
A market-led export strategy has been successful for the dairy industry and every other successful exporting company in New Zealand.
So why does the wool industry think it can be successful without a market-led export strategy? Why is the New Zealand wool industry still on about supply-push issues and solutions instead of demand-pull solutions? Why dies thirty years of decline in the wool industry translate into continuing the same old thinking ? And why do the players in New Zealand wool industry continue to think the competition is each other, when it is actually the world-wide multi-billion dollar synthetics industries?
It is time for some new thinking.
For New Zealand to move away from being a wool commodity exporter to an exporting nation of high -earning added-value quality natural fibre products, wool needs to be positioned as a luxury natural fibre, sustainably produced from the natural environment and marketed under the "Brand New Zealand" story.
Likewise the primary sector needs to realise that to successfully sell its natural fibres to the world (wool, possum/ merino) it needs a strong and resourceful textiles sector that adds value through innovation and design and successfully markets under "Brand New Zealand".
It is the business in the Textiles sector that convert the natural fibre into export products and it is the businesses that sell to overseas businesses and earn foreign exchange. The primary sector needs the manufacturing sector to add value to its natural fibres, and it also needs those manufacturers to be successful exporters.
The "Manufacturing" connect between New Zealand raw materials and finished product should not be underestiamted. The New Zealand manufacturing base demonstrates to the rest of the world the quality product that can be made from our natural fibres. Whether or not the manufacturing evolves into an Icebreaker model of New Zealand-design offshore-production or the possum/merino New Zealand-based model of design and production, the fact is these successful industries are providing immense value and export return to New Zealand's raw materials.
It is also essential that New Zealand is a power house of innovation through R&D for our natural fibres. To deliver product innovation continually increases the value of the natural fibres.As a result New Zealand-made/designed product helps drive demand and value for the natural fibre, even when sold as a raw material overseas. The natural fibre industry needs New Zealand -made/designed product branded under "Brand New Zealand"to demonstrate to the world the value of using those natural fibres.
As a result the strength of the New Zealand textiles businesses is critical to the success of the primary sector that produces the natural fibres.
New Zealand's textiles sector is well placed to embrace the challenge of doubling its natural fibre export earnings over the next five years.
Despite the sector over the last twenty years experiencing major downsizing due to aggressive global competition and the removal of tariffs ( the trade-off on FTAs to assist New Zealand's export industries, particularly dairying); the businesses remaining in the sector are in fact very resilient and have found their own competitive market niche. There are about 2000 smart and innovative companies which employ over 15,000 workers and export over $500 million of product a year.
Many of the businesses however still have an immature export profile. For example the possum/merino manufacturers have developed an industry worth approximately $102 million dollars (+GST) at retail per year, yet their export profile is immature at just 10-15% of their sales volume. Their export potential however is very high. Because possum/merino is a fibre unique to New Zealand sales of luxury, light and warm garments have a strong competitive advantage when exported under "Brand New Zealand".
Government and farmers are looking for answers on the future of the wool industry. The answer is under our nose. Work with the New Zealand textile sector and support an export industry that can double its export activity over the next five years, provide a huge stimulus to the wool industry, create $500m more in export revenue and create countless new jobs.
It is time wool farmers took an interest in what happens to their natural fibre. Farmers equity needs to find its way into New Zealand manufacturing entities. Farmers and textiles businesses need to become partners. It is not as though we have to start from scratch; New Zealand has a highly skilled and resourceful textiles sector.
New Zealand textiles businesses can help grow New Zealand's export future by providing innovation, branding and marketing to sell to the world natural, authentic, homegrown, environmentally-friendly,sustainable,beautiful quality textiles,clothing,carpets and life-style products sourced from natural fibres and the natural environment and marketed under the "Brand New Zealand" story.
Cuts to Wool Research a crying Shame
"It's a crying shame", is the response from Textiles NZ CEO Elizabeth Tennet to the axing of 36 scientific and technical jobs from AgResearch in the areas of wool biology and new textiles.
It's not good enough to say because the farmers voted down their wool levy, this justifies destroying the innovation and R&D in the wool industry in which New Zealand has been a world leader.
"Where is the leadership from the government?"asks Ms Tennet. "Any one can cut and burn , it takes leadership to build".
"The primary sector is and will continue to be a powerful generator of New Zealand's export wealth. Currently however, the wealth is generated mainly from exporting raw materials from the food and fibre industries. The greatest wealth comes from adding value to these raw materials through innovation and creativity.
"With its natural fibres ( Wool, merino, possum/merino) and the world's demand for sustainable products New Zealand is in a strong position to build a successful export-oriented sector targeting the export of luxury natural fibre products. The Textiles sector is a critical part of the natural fibre value chain and New Zealand's Economic Growth Agenda.
"New Zealand already has a comparative advantage through its history of wool innovation, its world class design and creativity, environmental and social sustainabililty , and the globally recognised "Brand New Zealand".
"New Zealand already has a comparative advantage through its history of wool innovation, its world-class design and creativity, environmental and social sustainability, and the globally recognised "Brand New Zealand".
"New Zealand has the advantage (capability and reputation) of positioning itself as a country producing luxury natural fibre, sustainability produced from the natural environment and marketed under the "Brand New Zealand" story.
"The future of New Zealand's natural fibre primary sector, relies upon the textiles sector spearheading innovation, design, branding and marketing to sell to the world natural, authentic, home-grown, environmentally-friendly, sustainable, beautiful quality textiles, clothing , carpets and life-style products sourced from New Zealand's natural fibres and the natural environment".
"Textiles NZ has a strategy to work with wool companies to double their exports over the next five years."
"The export market future for sustainable wool is very bright ", says Ms Tennet, "But that means wool research needs to be supported, not slashed and destroyed".
Future of the New Zealand Wool Industry - A market - Led Perspective
A Market -led export strategy has been successful for the dairy industry and every other successful exporting company in New Zealand.
So why does the wool industry think it can be successful without a market-led export strategy? Why is the New Zealand wool industry still on about supply-push issues and solutions instead of demand -pull solutions? Why does thirty years of decline in the wool industry translate into continuing the same old thinking? When is the wool industry going to realise its product is just another commodity, unless it is made into something special that people want to buy? and why do the players in the New Zealand wool industry continue to think the competition is each other, when it is actually the world-wide multi-billion dollar synthetics industries?
It is time for some new thinking.
As a trading nation, New Zealand's standard of living is dependent upon wealth generated from its export industries. To be successful exporting nation New Zealand must understand what its comparative advantage is in the world economy. The reality is that New Zealand gains most of its export wealth from tourism and the agricultural economy, and the comparative advantage is two-fold:-
1. producing quality goods and services from New Zealand's natural environment
2. adding value through innovation, powerful branding under "Brand New Zealand" and superb marketing
For New Zealand to move away from being a wool commodity exporter to an exporting nation of high -earning added-value quality natural fibre products, wool needs to be positioned as a luxury natural fibre, sustainably produced from the natural environment and marketed under the "Brand New Zealand" story.
The primary sector needs to realise that to successfully sell its natural fibres to the world ( wool, possum/merino) it needs a strong and resourceful textiles sector that adds value through innovation and design and successfully markets under the "Brand New Zealand "story.
It is the business in the Textiles sector that convert the natural fibre into export products, and it is the business that sell to overseas businesses and earn the foreign exchange. The primary sector needs the manufacturing textiles sector to add value to its natural fibres, and it also needs those manufacturing to be successful exporters.
The strategic vision and future for the wool and textiles industries in New Zealand rely on innovation, branding and marketing to sell to the world natural, authentic, home-grown, environmentally- friendly, sustainable, beautiful quality textiles, clothing , carpets and life-style products sourced from natural fibres and the natural environment.
It is also essential that New Zealand is a power house of R&D for our natural fibres. To deliver product innovation continually increases the value of the natural fibre. As a result New Zealand-made/designed product branded under "Brand New Zealand" to demonstrate to the world the value of using those natural fibres.
As a result 'the strength of the textiles business is critical to the success of the primary sector that produces the natural fibres.
Only then does New Zealand capture maximum Net Economic Benefit (NEB), through increased profits and jobs. NEB is grown through the actions of:-
# smart and innovative businesses in the Textiles Sector
# Active government intervention that mitigates market failure and whilst adhering to New Zealand's international trade commitments, recognises the beneficial role of the textiles sector to the primary sector and wider economy
The textiles sector can play a major leadership role in assisting the future of the wool industry in New Zealand. Such a strategy must embrace new thinking towards a market-led approach which leads from the front end of the value chain.
A Market-Led Export Strategy
The most successful exporters in the textiles sector are those that are demand driven. They know and continually find new export markets, and then they produce what the market wants.
To meet market demand requires an agile R&D and market-driven philosophy.
Different markets in the world are quite different from each other, so different approaches need to be taken to each market.
The vision should be to double exports within the next five years from the textiles sector , focusing on the natural fibre industry.
The world has an insatiable demand for natural fibres and New Zealand textiles businesses are well placed to embrace the opportunity. Although the sector has been through tough times, it is in fact very resilient, it contains a real depth of skills and knowledge, and there is a determination in the industry to grow.
What Needs to Change
The future of the wool industry lies in the textiles businesses producing natural, authentic, home-grown, environmentally-friendly, sustainable , beautiful quality textiles, clothing , carpets and life-style products sourced from natural fibres and the natural environment and exported under "Brand New Zealand". Wool does not need to be just another commodity.
Government's export strategy needs to support the textiles exporting manufacturers to deliver a market-led export strategy for the wool industry.
Government and industry investment is essential to promote R&D and design as part of a smart natural fibre export-led strategy.
The textiles industry stands ready to work in partnership with the wool industry. Government policy and the wool industry must join with the New Zealand textiles industry to allow it to lead from the front of the wool value- chain to create increased value and growth in demand for wool.
Onlyl then will there be a market-led export strategy for the wool industry, and only then will the farmers receive value-added returns on their beautiful natural fibre.
Unique New Zealand Industry Needs More Possum Fur to Support Export Growth
"New Zealand's unique possum/merino industry needs more possum fur to support its export growth, says Elizabeth Tennet CEO of Textiles NZ in response to the Green Party's release of its Green New Deal on Pest Control
"As a result, Textiles NZ is all in favour of more possum control by trapping.
"New Zealand is the only country in the world producing beautiful quality possum/merino products. They are unique luxury products which are 40% lighter than woollen products and 50% warmer. The industry is worth over $100m a year, it directly employs 1150 workers and pays over $40m in wages into the New Zealand economy.
"The industry can double its export growth in five years to $200m a year, and assist merino farmers by doubling its demand for merino wool. However, the major constraint is finding enough possum fur to meet the tourist and overseas market demand.
"New Zealand is sitting on an unique opportunity for export and job growth. What is needed is more possum trapping and the collection of more possum fur. A co-ordinated system of permits for possum trapping would be a good start", said Elizabeth Tennet.
First Ever New Zealand Textiles Sector Trade Show
"Championing our natural fibres will be a turning point to a sunrise New Zealand Wool industry", says Textiles NZ CEO , Elizabeth Tennet.
"For the good of the earth's environment we all need to lessen our dependency on oil-based synthetic products and recognise the value of natural fibres. World demand for natural fibres is growing fast and New Zealand is well-placed to capture the economic opportunity from its wool industry, provided it is market-led and export focussed".
"We need to champion what we are good at and the future of New Zealand's wool industry relies upon our textiles sector spearheading innovation, design, branding and marketing to sell to the world natural, authentic, home-grown, environmentally-friendly, sustainable, beautiful quality textiles, clothing, carpets and life style products sourced from New Zealand's natural fibres and the natural environment", says Ms Tennet
For the first time ever over 50 of New Zealand textiles businesses are showcasing themselves to potential buyers, diplomats, MPs and students about to enter the industry.
At the Textiles Sector Trade Show on 26th May Natural fibres and innovation will be at the forefront with a display of carpets and rugs, interiors, bed-ware,textiles and all items of clothing and apparel. New Zealand wool and possum/merino products will be features, together with products demonstrating smart new innvations.
Massey Design students are themselves displaying to demonstrate leading- edge design, and the Trade Show will be a melting-pot of manufacturers, designers, buyers and decision-makers.
"We need our designers and fashionista to champion our wonderful sustainable home-grown natural fibres, and we hope this Trade Show will just be the start of New Zealanders' championing the New Zealand wool industry". Said Ms Tennet.
Energy Efficiency Programme
Do you want to boost profitability and cut costs by investing in energy-efficiency technology? not sure where to start?
A new energy efficiency programme has been launched by Textiles NZ in partnership with the Energy Efficiency and Conservation Authority (EECA) to help members of Textiles NZ identify opportunities to save energy and boost profitability.
Energy is a major overhead for textile manufacturers and the textiles care sector. Margins are tight and businesses are always looking to streamline operations. This new programme has been set up to demonstrate that energy use can be reduced - bringing real benefits to the bottom line. These savings aren't a one-off but are achieved every year - so can total substantial savings over time.
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