Elders have created Wool Marketing Enterprises a company (100 per cent) owned by Elders Primary Wool to take a leading role in wool sales to ensure farmers have a sustainable industry.

As such a Heads of Agreement has been signed with CCA Global Partners an American company and the world’s largest carpet retailer, to supply it with New Zealand strong wool.

The details will be thrashed out next month, Stuart Chapman Elders Rural Holdings managing director said.

He cautioned that while thrilled with the agreement and what it will mean for growers, it would likely be next year before it all clicked into place.

Once activated, the intent is to up-sell wool in a way that willcreate further value for farmers.

“It won’t happen overnight, it will be a gradual increase in prices, but will be more money in farmers’ pockets.”

Putting the deal together had taken months of hard work and negotiation and significant investment by Elders.

Mr Chapman said Elders were particularly impressed with their American partners who are very positive and have confidence in New Zealand strong wool.

“They wanted continuity of supply and we can give it to them.”

The volume required will not detract from other contracts Elders has with companies elsewhere in the world.

CCA Global Partners spends thousands of dollars training and upskilling their retailers and providing education material to promote and sell carpets.

“They are in a strong position to place New Zealand wool carpets around the world.”

Features of marketing will include assurances of traceability and a brand which tells a story about New Zealand strong wool. An American designer is working on the brand.

Telling the story was important, Mr Chapman said.

“It is about people being able to identify that this is true blue New Zealand strong wool.”

Elders were using an American company to sell the carpets because they were aiming at an American market.