Good news for the wool industry. Wasn't such good news in December of last year when Kainga Ora, the country's largest landlord, put out tenders for new carpet and underlay, and specifically said wool suppliers need not apply.
So that was in December of 2024 then in January 2025, the agency opened its tender process to wool carpet suppliers, allowing a direct price and offering comparison. Remember when the representative for the wool industry said that wool suppliers, wool carpet suppliers, hadn't even been able to tender? For more than a decade, Kainga Ora had been using nylon and that was that. You weren't even allowed to say, look, actually, we can give you a really good price. It was just thanks, but no thanks.
And that was still the policy back in December of last year. in January, Kainga Ora opened itself up to what the wool industry could offer. At the time, chief executive Matt Crockett said Kainga Ora had traditionally used solution-dyed nylon carpet due to the durability and price. But yesterday came the announcement that Kainga Ora will use wool carpet in new state homes as of July.
The Government has played a huge part in this decision. Back in December of last year, as I say, Kainga Ora said no. Wool providers were specifically excluded in the call for tenders. That was because it was believed that wool was an extra $2-400 more per home than nylon. But after a directive to about 130 agencies in April that government buildings and government suppliers would use wool where possible, Kainga Ora changed its mind. Said, feel free to make a submission. Feel free to give us a price. And now New Zealand sheep farmers will be providing the carpet for Kainga Ora homes as of July. About 4500 new state houses will be affected, will be expected to be fitted out in the next three years.
Now I'm a huge fan of wool. I've been harping on about it for nearly a year now after having wool carpet put into my place. And surely its benefits outweigh the fact that it's slightly more expensive than the nylon – or rather it was. You know the $2-400 was before the wool carpet providers were able to actually come up with a price for Kainga Ora. They may well have sharpened their pencils. We won't know because the total value of the contract is commercially sensitive and can't be disclosed, according to Kainga Ora. So we don't know but you'd imagine that it's at least competitive with the nylon. And when you look at the whole of life of the carpet, you may well see that it's cheaper in the long run, better value in the long run than the nylon. The natural qualities allow wool to dampen sound, absorb pollutants. They contribute to healthier indoor environments by regulating humidity and improving air quality. So in terms of whole of life costs, sustainability, and health benefits, it ticks all the boxes.
So yay for the government directive. Yay for New Zealand's sheep farmers. Yay for the durability and environmentally superior qualities of all carpet. It's got to be a win for everyone, doesn't it?
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