Home / Knowledge / News / Textiles / NZ Merino signs 5-year deal with Italy's Reda for $45mn
NZ Merino signs 5-year deal with Italy's Reda for $45mn
04
Jun '16
New Zealand's wool marketer, the New Zealand Merino Company, has signed $45 million deal to supply fine wool to Italian luxury fabric manufacturer Successori Reda over a five-year period.

This is the longest-ever contract for the New Zealand Merino Company which markets the country's wool to customers on behalf of suppliers. The extended contract is expected to relieve farmers of boom-or-bust commodity volatility. Previously, NZ Merino's longest contract period covered three years, it said in a press release.

Successori Reda is a textile leader which has been in the industry for 150 years, concentrating on high-end suit fabrics and more lately active product ranges.

The fixed-price contract for 2,500 tonnes of fine wool in the 15.8 to 19.2-micron range effectively locks up supply for all of the qualifying wool that New Zealand will produce over the five-year period, said NZ Merino Chief Executive John Brakenridge.

New Zealand sheep farmers benefit from the deal by gaining higher fixed-price certainty to underpin production, avoiding the potential volatile spot market pricing for commodities.

"We are bringing more and more business out of commodities and into this relationship between growers and the end brands," Brakenridge said. "That's very good for us as a business and it's very good for the growers in this country."

For Reda, which reportedly supplies fabric to luxury brands including Giorgio Armani, Gucci, Tom Ford and Hugo Boss, renewing its contract for New Zealand wool enables it to secure supply of high-quality fibre that meets its specifications, and provides end consumers with a link back to growers, enhancing its brand.

Reda "get the volume of high-quality wool they require and growers get the certainty of good prices for their wool for longer," Brakenridge said. "It just really removes the whole commodity volatility. New Zealand primary sector needs to do this because volatility destroys markets."

It's renowned globally for wool suiting fabrics and has diversified into activewear, with their fabrics used in sportswear, as lining for ski boots and helmets, in boardshorts, and waterproof jackets and footwear.

Reda's global procurement director Fabrizio Botto Poala said the deal with NZ Merino addressed significant supply issues for the company, allowing it to continue expanding its product range, and guaranteed quality and traceability. (SH)

Fibre2Fashion News Desk – India

Must ReadView All

Courtesy: Kornit Digital

Textiles | On 28th Feb 2017

'Customisation is an advantage of digital printing'

Changing business models and companies' decision to reduce their...

Textiles | On 28th Feb 2017

China's textile & apparel exports up 10.2% in Jan 2017

Exports of textiles and garments from China resumed growth in the...

Apparel/Garments | On 28th Feb 2017

Delta Galil's Q4 operating profit jumps 80%

In the three months to December 31, 2016, operating profit at apparel ...

Interviews View All

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Priyanka
Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search