Purelana Launched For Direct Wool Contracts

Purelana launched by WSI for Direct Wool Supply Contracts

New Zealand's leading wool exporter and scourer, New Zealand Wool Services International Ltd (WSI) has launched a new exciting direct supply initiative which it hopes will result in better long term returns for growers.

WSI managing director, Michael Dwyer said the initiative would support the company's Purelana brand. The Purelana brand which is a registered trade mark has been developed exclusively by WSI to provide superior New Zealand scoured wool product with a clear point of difference in export markets.

"Unlike other coarse wool supply contracts, both past and present, there are no hidden costs here. WSI is offering woolgrowers very generous premiums, in return for their commitment to supply WSI exclusively.

"We consider this initiative a partnership with farmers, with the sole intention being to lift wool returns as a means of strengthening both farmers and our company's investment in producing, processing and marketing branded New Zealand wool"he said.

With a three year exclusive supply contract, woolgrowers signed to Purelana will receive an annual forward market price, a premium pool payment and a loyalty rebate. The terms of the agreement are totally transparent, with no hidden costs. Farmers can thus accurately budget their net wool returns.

"This is a change for the better in the New Zealand wool industry"he said.

Implementing this initiative broadens the Purelana branding strategy and aims to ensure sustainable returns for woolgrowers and WSI. Guaranteed farmer commitment will underpin the Purelana brand, enabling WSI to strengthen its competitive position in the international market place, which they believe will assist prices to recover over a period. Growers will, of course, share in the increased returns.

Consumer markets and regulatory bodies worldwide are beginning to demand traceability and auditability, for a far wider range of product than ever before and a higher value is being placed on products that comply. The primary sector is being pressured into compliance. Wool is no exception. "Traceability differentiates Purelana from other wool. Because we control and track our product at every stage of the production chain, through procurement, processing and marketing, every bale of Purelana wool can be traced and documented from its raw state to its final use. This enables customers of goods made from Purelana to verify the products origin. This is proving an important selling point to customers and retailers of our product.

"This initiative was inspired from the desperate need to lift the woolgrower's returns from wool. The low returns farmers have experienced for a number of years, has shifted their focus away from wool production and quality control. The only way to convince farmers to retain a quality clip is to lift their returns. Purelana is designed to take the first steps to achieving that"Dwyer said.

A commitment of long term supply on both sides will give consistency in timing, quantity and quality, which are important for processing and marketing.

WSI is developing this concept with several major woolgrowers and aim's to make this trading option more widely available in the future, once proven.

All wool procured by WSI through its Purelana direct supply initiative will be processed at one or other of the company's two state of the art scours ­ at Kaputone north of Christchurch and Whakatu in Hawkes Bay.

WSI currently markets a major percentage of New Zealand's coarse wool clip to clients in over 30 countries.

ENDS

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