The Country 26/09/25: Rachel Shearer talks to Jamie Mackay

The GM of PGG Wrightson Wool has good news: strong crossbred wool is worth something. The South Island Strong Wool Indicator was up 46 cents with 98% clearance. 

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Episode Transcript

Speaker 1 (00:00):
This is an interview I've been waiting about ten years
to do. Yes, the strong wall market had a big
bounce yesterday. In fact, up forty six cents South Island
Strong Will indicate a ninety eight percent clearance to tell
us about it, and I bet she's got a spring
in a step. Rachel Sharer, the GMFPGG Rights and Wall
and Rachel, I just wish your predecessor, the late Grant Edwards,

(00:22):
was here to do this report. I think he would
have loved it.

Speaker 2 (00:25):
I think we all wish that Grant was still here,
and in fact we celebrated him yesterday thinking how much
he would have enjoyed yesterday's auction because man, there was
intention and buzz in that auction room yesterday and we're
absolutely delighted for our growers. They certainly deserve it. But
as I always say, there's still there's still a way
to go, and we need to continue this momentum upwards.

Speaker 1 (00:47):
Well, let me quote Dave Burrage, your South Island auction manager.
He said significant global shortages of all wall types has
prompted levels of demand at Christchurch at the Christchurch Will
Exchange not seen in a generation. Bidding at times was
extreme with buyers having to fill immediate orders into China.

(01:09):
So here's the question, the sixty four thousand dollars question,
Rachel share it is this just a one off blip.
I hope not well.

Speaker 2 (01:17):
I absolutely hope not as well, and so to our growers.
But look, I think it's as sign as the momentum.
I think that there is a lot of telltale signs
that fins a shifting. You know, we've had multiple initiatives
from the Woolen government buildings. You know, the Nanjing wall
market up in China that's recently included. You know, many

(01:38):
believe that that was the most positive market or opportunities
for business that's been seen since twenty eighteen. We've got
the EU legislation coming through legislating against non sustainable fibers.
We've got decreasing supply. I think I mentioned to you
last time Australia that a low not seeing of sheet

(01:59):
numbers not seen since before the First World War. So
you know, there's an increasing demand from those who are
seeking sustainable options and there's lowering lowering supply. So I
think we're in a classics supply and demand situation which
can only be good for our hard working growers.

Speaker 1 (02:14):
So when you talked about the Nanjing wall market, is
this this new deal that Walls of New Zealand signed.

Speaker 2 (02:21):
No, that's a that's it's a market that many from
the industry from all over the world were in China,
including our Minister Patterson on behalf of the New Zealand
wall wall industry.

Speaker 1 (02:33):
But Walls of New Zealand has signed a partnership agreement
with the leading Chinese manufacturer. That's got to be good news.

Speaker 2 (02:41):
Yeah, that's good news, and there's multiple good news stories
coming through, so let's hope that continues to the buyers
putting as much pressure on each other as they were
used today to get hold of to get their hands
on the wall. It was pretty exciting to see.

Speaker 1 (02:56):
I've got to be honest, Well, I'm pleased to hear it.
Strong Wolves really been dragging the chain when it comes
to the primary sectors, so hopefully this is the beginning
of a new dawn. Rachel, I'm very excited for you.
When it came to the fine wall types, I mean
they've been better than strong Wall, but a major Australian
based walk exporting company dominated the floor yesterday. Is this

(03:19):
off the back of as you pointed out, they're declining
sheep numbers in Australia.

Speaker 2 (03:24):
Yeah, it was really fascinating yesterday as the Australian buyer
who comes across he actually ended up buying half the
value of yesterday's action, so half of the values of
yesterday's auction went to Australia. And he was also buying
crossbread wall, So that shows the real constraint of demand
over there. There's a lot of crossbread as many will
know in Australia. So the fact that the Australians are

(03:45):
starting to buy up the New Zealand crossbred wall just
continues to show how much value international buyers are placing
on New Zealand wall. And you know, he brings an
interesting dynamic. And you know the open cry option is
one way that growers trend that there will but it's
a really transparent way to observe the sentiment of the
exporters and that was heated yesterday at times when they

(04:08):
were outbidding each other for a lot that they fought
over some of the language under their breath. So you know,
I couldn't repeat on the radio, but Jesus was exciting
to see.

Speaker 1 (04:16):
Well levels of demand not seen in the generation. We
will take that, Rachel Sharer, We'll chat again next month.
Hopefully the good news continues.

Speaker 2 (04:25):
I look forward to talking to you, and, Likewasier, I
really hope that the market continues to hold an increase