New Zealand Wool Prices Hit 15-Year High

The New Zealand wool industry is experiencing a recovery after decades of decline, with prices reaching their highest levels in 15 years during June auctions. This resurgence is driven by rising oil prices and a tight global supply, which have increased the cost of synthetic fabrics and pushed buyers in China and India toward natural fibers.

PGG Wrightson reports that while July auctions showed some price volatility, overall prices remain approximately $2 higher than they were a year ago. Growth is expected to accelerate following a trade deal between New Zealand and India that eliminates tariffs on wool exports.

Global luxury and outdoor brands are increasing their involvement in the sector. Chanel signed an investment deal to part-own and support premium wool production at Lammermoor Station, while Patagonia visited New Zealand to explore potential partnerships. Additionally, Wools of New Zealand Limited entered into a deal with Turkish carpet manufacturer Kalida Hali.