The once plagued wool industry gets a chance to move towards profitability as Elders Primary Wool is in receipt of a carpet deal that will earn farmers a premium of $1.30 per kg.
International Design Guild's 120 US stores are likely to obtain a range of carpets from United States carpet manufacturer, Fabrica. Elders has signed a small yet important contract to supply Just Shorn branded wool to the above company for production.
Off late, wool is being sold for less than $3 per kg. In order to qualify for the premium, wool must meet with the requirements and quality criteria and meet farm management and animal husbandry accreditation. Further to prove that wool comes from the farm as declared, the above procedure will be supported by the firm's traceability technology
Around all this, Chapman said, “We are yet to confirm accreditation standards and also decide on who will finish the audits. But that does not mean that the Fabrica contract be undervalued.”
Chapman also said, “The importance of this is the fact that there is a premium and it assures what US retailers have said, that they can sell product at a premium. It also ensures that the Just Shorn contract is on the right path.”
According to Chapman, this contract proved Elders' belief that the wealthy would indulge in paying more for the carpets that were naturally made from long-lasting, environmentally friendly products.
According to Chapman, the rich did not change carpets because it had worn out instead they considered carpets as a fashion accessory and therefore replaced the old carpet with a new one, every six to seven years. Fabrica and International Design Guild would launch these carpets in July.
Chapman was sure that, other carpet producers would also follow in Fabrica's footsteps and source wool from Elders. He added by saying that, two flooring retailers associated to the US-based CCA flooring company could also buy Just Shorn wool, thereby raising the market share by 1400 flooring stores.
“It will take it time for the wool industry to turn tables after 30 years of downturn. However, I am confident that this plan will generate fortunes for the wool cultivators”, says, Chapman.
Fibre2Fashion News Desk - India