SmartWool Corporation, the single largest branded
purchaser of New Zealand merino wool, has inked a partnership with The New Zealand Merino Company that guarantees minimum price levels for New Zealand wool growers producing merino wool for use in SmartWool's products. The new contract, which follows on two previous multi-year contracts between the parties, covers a period of seven years, and has a total value approaching $30,000,000.
Historically, merino wool has been bought and sold at auction, with no
connection between the end-user of the wool and the wool grower. Thus, the
wool grower had no appreciation for the intended use of the wool, and thus
could not raise sheep or produce wool to meet specific quality standards.
Over four years ago, SmartWool started purchasing its wool under fixed price
contracts with specific New Zealand wool producers. The newest SmartWool
contract takes this partnership one step further, providing for an
unprecedented seven-year term and establishing a minimum price to the wool
grower that ensures the grower a reasonable return on their investment in
raising Smart sheep. As stated by Brian Hore, one of New Zealand's largest
wool growers and a long-time supplier to SmartWool, “this relationship
provides certainty, stability and a fair return to the growers, and enables
us to focus on long-term improvements in breeding and raising sheep to
SmartWool¹s exacting specifications.”
“It also helps to ensure that raising
sheep in New Zealand will remain a viable and sustainable lifestyle for me
and my family for many years to come.”
The contract is the latest initiative in SmartWool's “SmartPrint” program,
through which SmartWool is committed to leaving a smart footprint on Earth
for future generations. Through the SmartPrint program, SmartWool works
with its supply chain partners to establish good business practices that
focus on continuous improvement in animal welfare and environmental
practices, and that ensure economic sustainability for the merino industry.
For example, as part of this new contract, SmartWool has agreed to pay a
premium to its growers to reward them for their efforts to end the
controversial practice of ³mulesing² sheep by the end of 2005 many years
ahead of the goal of ending the practice by 2010, as recently established by
the Australian and New Zealand wool industries.
In commenting on this latest partnership between SmartWool and the New
Zealand wool suppliers, SmartWool President, Chip Coe, noted that ³SmartWool
has a rich history of leadership and innovation, having essentially created
the market for merino wool active apparel over the last ten years.”
“We are pleased to again take a leadership position by guaranteeing our wool growers a sustainable profit and rewarding them for working together with us toward processes that benefit the animals and the environment.” Issuing a challenge to the outdoor and lifestyle apparel industry to join with SmartWool, Mr. Coe said “SmartWool looks forward to other companies joining our efforts to bring stability and sustainability to the wool industry with new and innovative programs such as this partnership. The industry needs more long-range thinking. It is not enough to sign on to a publicity-oriented boycott and walk away.”
