The Natural Fibre Exchange (NFX) shareholders are Wools of New Zealand Ltd (WNZ) and Alliance Group, who have teamed with CRA International (CRA) who will develop and manage the NFX platform.
WNZ chief executive and NFX spokesman Rosstan Mazey says NFX will add more shareholders over time.
They hope to sell about 33% of the NZ wool clip over the next three to five years via the NFX trading platform.
Wool brokers will have the opportunity to sell on the platform.
“We are not wanting to preclude anyone from participating,” says Mazey.
“We want to encourage the industry to cooperate and work together on this. They will absolutely have the opportunity to sell their supplier growers’ wool via the NFX.
“Crossbred wool will be where we start and maybe down track we will attract the finer micron wool.”
Mazey says NFX will be a fairer way to discover price and “over time will help to grow more sustainable returns to growers”.
Discussions with many in the industry have brought positive feedback, and acknowledgement that an online platform is needed as a more convenient and effective means for selling large volumes of wool at a fair market price.
“Online trading is increasingly important in international commodity markets. This platform is a natural evolution towards developing the most efficient means of selling significant volumes of wool. Buyers in turn can compare all prices in real time with all parcels of wool available simultaneously during multiple rounds of bidding.”
Mazey says the platform will be a means of discovering an objective reference price from the perspective of buyers and sellers.
NFX has initial commitments of about 6.5 million kg for the first 12 months from sellers including WNZ, Alliance and most major producers of slipe wool.
“It’s early days and discussions are being held with other major sellers and buyers. Initially, the focus will be on securing support for greasy wool, with potential to develop other offerings.”
After the opening event on May 22, 2pm (NZ time), auctions will be held fortnightly on Tuesdays. All products will be offered simultaneously over multiple bidding rounds from 2pm.
