New Zealand-Wool for China.

NEW ZEALAND-WOOL FOR CHINA.

TOUGH new environmental laws to clean up China’s water will benefit New Zealand wool growers. The Chinese government has its sights on wool scours, of which there are about 2000 in China.

Many are small operators, unable to upgrade their scours to new environmental standards and will have to close soon.

Picking up the excess scour capacity and with major expansion in mind is Tianyu in the Zhangjiagang Free Trade zone.

The company has spent $60 million of government funds upgrading its scour and water treatment facilities and needs to increase throughput by a further 100,000 tonnes. More than 80 per cent of the scoured wool was exported.

Tianyu was working ahead of itself and had already completed June orders.

In charge of procurement and marketing is the founder’s son, Tony Wen.

Mr Wen has a grass roots understanding of the industry having spent five years in Australia looking after sheep, then starting out on the scour floor.

During a passionate presentation to the Elders wool tour delegation, Mr Wen extolled the virtues of wool and all the tangible qualities it provides. He said Tianyu clients prefer New Zealand and Australian wool.

He was optimistic the wool industry could and would bounce back. The day of his presentation the price per kilogram was up between 15 to 20 cents. But April was the peak season for wool and there was a lot of competition for it.

The company is focused on early stage processing of fine micron wools in the 14.5 to 24 micron range and wants more volume from both countries, but was only interested in direct supply links with growers.

To secure supply links Tianyu offered deposits to growers at the start of their shearing.

"We want more direct relationships with the farmers and believe it is important to organise a supply chain from start to finish with the emphasis on a story about the wool.

"Also we want you to have a profit so you and I and our clients can continue," Mr Wen said.

It was important that growers also knew who they were growing for and where their product ended up, he said.

Mr Wen visited New Zealand last year to meet Elders clients capable of supplying the wool Tianyu required.

He said he thought the promotion of New Zealand wool needed addressing.

Wool promotion had slipped, which was why cotton and synthetics had gained favour, but that could be changed with a concerted marketing effort, he said.

"You need people to promote and talk about the virtues of wool and spread the word to your children so they become future buyers. People need to know wool has other uses such as in sportswear, and for extreme wear clothing.

He said Tianyu would like to be involved in collaborative promotions of wool.

"We want to promote the wool and help you guys grow your business together."