Declining NZ wool quality raises concerns for exporters, says Patterson
A deterioration in the quality of New Zealand's wool clip is a problem for manufacturers and exporters, says Associate Agriculture Minister Mark Patterson.
Local manufacturer Bremworth will be the supplier of wool carpet for Kainga Ora's newly constructed and retrofitted homes will see wool carpet installed in almost 1,000 planned state housing projects annually.
The multimillion-dollar contract is being hailed as a breakthrough for NZ’s natural fibre sector by industry experts.
The wool sector had protested after being overlooked in favour of overseas synthetic carpet suppliers.
Bremworth chief executive Craig Woolford says the win has far-reaching implications for both public sector procurement, the rural community and the broader property development industry.
“This isn’t just a commercial contract, it’s a signal to the entire construction sector that wool carpet meets the durability, safety and sustainability standards expected of any high-traffic housing environment. Government agencies like Kainga Ora are seen as setting the benchmark for the wider industry,” says Woolford.
“Wool has now passed one of the most stringent testing processes in the country. It’s proof that when put on a level playing field, New Zealand-made natural fibres can not only compete, they can win.”
The contract announcement follows extensive industry lobbying and sector advocacy, which pushed for wool manufacturers to be able to pitch for government building projects.
The agency’s decision to reintroduce wool carpet follows a recent Request for Proposal (RFP) inviting both wool and nylon carpet providers to tender for the supply of carpet and underlay in Kāinga Ora properties.
Chief Executive Matt Crockett says the new supply arrangements are the result of a robust procurement process that saw competitive pricing from the sector. This followed significant feedback from wool suppliers and the general public after the agency’s initial RFP asked for bids from synthetic only suppliers.
“As the country’s largest social housing landlord, we’re committed to investing in our housing stock in a financially sustainable way. The recent RFP was an opportunity for us to re-test market pricing, while ensuring the products used in our homes are fit-for-purpose, durable and represent value for money.
“For many years we didn't see competitive pricing from wool suppliers versus nylon. However, we listened to market and public feedback and decided we should give wool suppliers the opportunity to bid. We were pleasantly surprised to receive new bids that were price competitive. All credit to New Zealand wool suppliers for rising to the challenge.”
Nylon carpet will continue to be used for single room or smaller patch repairs in existing homes where nylon carpet is already installed.
“In those circumstances it makes practical and economic sense to use the same product throughout the home,” Crockett says.
Kainga Ora will transition to using wool carpet in its new homes from 1 July 2025, when the supply arrangements come into effect.
