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

New US alliance to promote postal package delivery service

Textiles | On 15th Aug 2018

New US alliance to promote postal package delivery service

A group of US retailing, e-commerce and logistics firms recently...

Courtesy: Industriall Union

Apparel/Garments | On 15th Aug 2018

IndustriALL-Esprit agreement to improve workers' rights

IndustriALL Global Union recently signed a global framework agreement ...

Indian minister orders fresh consultations on e-com policy

Textiles | On 15th Aug 2018

Indian minister orders fresh consultations on e-com policy

Indian commerce and industry minister Suresh Prabhu has asked for...

Interviews View All

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Asim Dalal
Indo Count Retail Ventures

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

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Ravi Raj Desai

Himalaya Cotton Yarn Ltd manufactures high quality denier. The spinning...

Sandip Bhojani, Manthan Patel

Krypthm Tradelink LLP is a Surat-based manufacturer of westernwear....

Harsh Shah

Fynd is the central online shopping destination for fashion, offering...

Matthew Kolmes
Supreme Corporation

Supreme Corporation manufactures innovative specialty yarns and safety...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Chandani Sahi
By Chandani

By Chandani is a womenswear prêt couture brand with fusion silhouettes by...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

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

Leave your Comments


August 2018

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

news category


Related Categories:

Advanced Search