The Country 31/10/25: Rachel Shearer talks to Jamie Mackay

The GM of PGG Wrightson Wool takes her monthly look at the state of the market.

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Episode Transcript

Speaker 1 (00:00):
Monthly here on the country, we catch up with the
team from PGG Rights and Wall to take a look
at the state of the market, and it would be
fair to say it's improved a lot. In fact, it's
twenty percent up year on year for strong wall, which
sounds good. But it's come off, of course, a very
low base, but at least we're heading in the right direction.
Rachel Sharer, You guys in the wall industry across the

(00:22):
board are trialing a new auction system. Gone are the
old North and South Island weekly or fortnightly auctions?

Speaker 2 (00:30):
Yeah, good afternoon, Jamie. Yes, we are trialing these national options.
We're looking instead of going fortnite about or a week about
at some stages during the year, looking at having more
regular options and that will be good, we believe, for
the cash flow for our growers, but also it gives
the buyers greater volume of wall to look at and

(00:50):
to phrenetically bid over.

Speaker 1 (00:53):
Can the buyers still physically examine the wall, touch it,
feel it, sniffet, smell it. I don't know what you
do when you're a wall buyer.

Speaker 2 (01:02):
They absolutely do all those things, and it's a really
important part of purchasing wall. Because well, as you know,
as a natural fiber, so it changes year on year
depending on what's gone on in the climate and what
the sheep's eaten and the whole bunch of things like that.
So alongside test data, we have buyers who come here
to our showroom before the options and face end of day,

(01:24):
sometimes two days going and inspecting every lot. And it's
really obvious to see in the open cry option that
what those different buyers view after they've seen and touched
and felt it.

Speaker 1 (01:36):
And you forgot sniffing it.

Speaker 2 (01:40):
And sniffing it of course, to be honest, they've all
got beautiful hands all that landeline. You should see their hands.

Speaker 1 (01:45):
I can imagine it's like the wall handlers and the
wall class is beautiful hands. I know that because in
a past life I used to be a bit of
a farmer sharer. Actually, when we used to share, we
were always in the rousies back in the day when
they were very fussy. I'm not saying that aren't now,
but I had to take the eye clips out because
that was a lesser or a more downgraded part of
the flee She wanted that hairy stuff around the eyes

(02:08):
away from the main fleece. Wall. Apparently someone in Australia
really wants some eye clubs.

Speaker 2 (02:13):
Well, yeah, absolutely. Three buyers came across from Australia for
the last option and they really brought some heat into
the room that eye clips were going for more than
double the valuation. So not just the Australian buyers, but
some of the New Zealand buyers as well on behalf
of their international clients. They were going crazy for eye clips.
So you wouldn't have thought that back in the day.

Speaker 1 (02:33):
Will these national actions be still in Napier and christ
Church or are you going to base them in one center.

Speaker 2 (02:41):
So we're trialing them across both islands. It makes sense
at a global level, it absolutely makes sense to do
it where they are likely to be. It doesn't make
sense because on a volume basis we sell more well
out of the North Island being crossbred, but on a
value basis we sell far more out of the South Island.
Given those fine wall options and having an international airport

(03:05):
here in christ Church helps bring those Australian buyers to
the bench. So we're working our way through these trails
over the rest of the year and then we'll make
a decision as to how we go from there.

Speaker 1 (03:16):
Strong Walls as well document that it's been a bit
of a battle for the past decade or so, but
it's on the improve, which is great. Fine Wall's been
largely pretty good, but it's having its battles at the moment.

Speaker 2 (03:28):
Why is that it's a bit of an erratic market
at the moment. We follow the Australian market very closely
and there was a rapid rise up in Australia and
that has come back off significantly over the last couple
of weeks, but it still hasn't come off nearly to
the levels that it was sort of a month or
two ago. So while it has come back, it's still

(03:51):
on previous months, that's for sure, but it's just having
a bit more of a roller coaster ride in that
Fine wal space. Time is going to tell whether those
at the far end of supply chain where that they're
going to adjust to these new price levels. But we're
hoping that momentum continues and it's a good sign for
our hard working grow as that's for sure.

Speaker 1 (04:09):
Rachel Sharer from PGG Rights and we'll good to catch up.
We'll see you in person, no doubt at the christ
Church show.

Speaker 2 (04:16):
Yeah, looking forward to it,