New Zealand Wool Prices Hit Highest Levels Since 2011 Amid Tight Supply and Surging Demand
Strong competition and tightening supply have seen wool reach its highest prices paid at auction since 2011.
With almost 50 years medical experience – specialising in head and neck reconstruction – Dr Robert Allen Smith noticed the unusual properties of keratin. After publishing several papers on keratin’s health benefits, he co-founded Keraplast biotechnology company in San Antonio, 1996.
This research discovered that wool sourced from NZ sheep contains high levels of keratin, a key structural material that protects epithelial cells (which covers all internal and external body surfaces) from damage. Keraplast was able to isolate the protein responsible for promoting skin healing and parallel research in New Zealand was able to extract it from wool.
This development has seen the establishment of a cosmeceutical export industry in Canterbury formulating dietary supplements, which contain keratin extracted from sustainably farmed sheep’s wool.
Natalie Harrison, managing director of local keratin supplement brand Kiri10, says the concept of consuming wool to provide health benefits for humans is still in its infancy but shows significant promise.
“Keratin extracted from NZ wool has been used in topical wound care for some years now following the discovery that wounds heal faster closer to hair follicles where there is greater collagen concentration,” she explains.
“We know that this extract can help wounds heal 25% faster by stimulating collagen production however it’s only recently that we have started to look at its application for human nutrition.”
Clinical and cosmetic use of keratin are closely linked – due to the shared interest in the formation and protection of skin, hair and nails. Globally, cosmeceuticals are growing at over 5% per annum and are forecast to exceed $100 billion within three years.
With New Zealand’s attractive, sustainable farming credentials and breeding programmes focusing on coarse wool – which yields higher keratin than fine wool – keratin has become a multi-million dollar industry. It reaches more than 50 different markets, including some of the world’s leading shampoo brands.
Some 80 tonnes of wool, sourced annually from Otago and Southland, are processed at a Lincoln research and production facility. It holds more than 180 patents covering the extraction of keratin from natural fibre. The process used results in a 91% match with human keratin.
“Along with the use of regeneratively farmed wool, this helps create a competitive advantage which is unique to New Zealand,” says Harrison.
“With the research support of our suppliers, we can use this knowledge to create supplements which are designed to help consumers repair and improve the health and appearance of hair, skin, and nails. The new product line will create a third pathway for New Zealand’s exports as well as serving the local market.”
NZ chairman of Campaign for Wool, Tom O’Sullivan says agritech companies are playing an increasing role in the development of NZ wool exports.
“We’ve known for some time that New Zealand’s wool industry can’t easily be differentiated as a commodity supplier,” he explains. “High tech applications like the extraction of keratin for health care and cosmeceutical industries are helping create new markets for wool and strengthen our brand equity internationally.”
O’Sullivan adds that at the same time these producers provide above average returns for farmers, which is helping to stimulate a move towards more sustainable farming.
New Zealand keratin is used in skin treatments in dozens of countries for the clinical management of wounds and severe burns – including those injured at White Island’s eruption.
