New Zealand Merino enters new era as Zentera

Richard Subtil (owner) – Omarama Station , Cassidy Grey (Zentera) on Omarama Station. Supplied

After three decades building global demand for New Zealand’s finest wool, the New Zealand Merino Company is preparing for its next chapter.

From March 17 the company will operate under a new name - Zentera Wool Company -a move CEO Angus Street says reflects both the changing global market for natural fibres and the company’s broader international role.

Street describes the shift as an evolution rather than a reinvention.

“It’s just really an evolution of NZM,” he says. “We’re able to do that because we’re building on the legacy of the last 30 years and those early New Zealand merino growers who realised that creating demand and adding value to their wool was going to be the differentiator that allowed them to stay in their farming enterprises for generations to come.”

The new name signals the company’s ambition to position itself as a global leader in wool, while also reflecting the fact that its grower base now extends beyond New Zealand.

“We’ve been sourcing wool from Australia since 2010 and South Africa since 2018,” Street says. “We’ve also been selling strong wool for about the last decade. Having a global name aligns with our global aspirations, but it also removes confusion in the marketplace.”

Zentera currently supplies wool from more than 600 growers across New Zealand, Australia and South Africa.

Certified wool demand rising

Central to the company’s strategy is the continued development of its ZQ and ZQ+ certification programmes, which verify wool produced under environmental, animal welfare and social responsibility standards.

Street says global demand for certified wool is increasing rapidly, driven both by consumer expectations and tightening international regulations.

“We’ve got increasing demand from brands for certified wool, and specifically demand for ZQ and ZQ+,” he says. “That’s driven by the regulatory environment, but also by consumer expectations.”

Brands supplying into Europe in particular are facing growing requirements around supply chain transparency and environmental claims.

“We are seeing strong demand for verified natural fibres with clear environmental performance and transparent supply chains,” Street says.

While certification can sometimes be viewed by farmers as another layer of paperwork, Street says the goal is to ensure growers capture long-term value for their wool.

“There absolutely is a premium for certified wool,” he says. “You can see it right now in the wool market. There is a premium for RWS-certified (Responsible Wool Standard) wool above non-certified wool, and then on top of that there is a premium for ZQ.”

In addition to price premiums, Zentera also works with brands to establish long-term contracts that can provide growers with greater certainty in a volatile market.

“Growers who work with us are able to supply into long-term contracts guaranteeing them a price over a longer period of time,” he says.

.Zentera Wool Company (formerly NZ Merino) chief executive Angus Street says the rename removes confusion in the market place. Supplied.

Addressing compliance fatigue

The push toward certification comes at a time when farmers across multiple sectors are already dealing with increasing regulatory and reporting requirements.

Street acknowledges concerns around compliance fatigue and duplication of data.

“There absolutely is frustration around audit burden and duplication of data collection,” he says.

Zentera is now working with other industry partners and technology providers to explore ways to streamline data collection and reduce duplication across the supply chain.

“We know certification will increasingly become a requirement to access the markets that are willing to pay a premium,” Street says. “Our role is to simplify, streamline and remove some of that burden, while at the same time building demand and recognition for growers’ wool.”

Rather than acting as a regulator, he says the company sees itself as a partner working alongside growers.

“If we positioned ourselves as a regulator, compliance becomes a zero-sum game,” Street says. “We see ourselves as a partner with growers to help access the opportunities that the textile sector is demanding.”

Strong wool momentum

The company’s expanded focus also includes strong wool, which has historically struggled to capture consistent premiums.

However, Street says demand for certified strong wool is strengthening, particularly in Asian markets.

“Strong wool certainly has had its ups and downs, but we are seeing genuine demand coming through,” he says.

That renewed demand has already been reflected in recent auction results.

Earlier this year the New Zealand Merino Company recorded its first ever certified crossbred offering at the Melbourne wool auctions, where crossbred hogget fleece broke the $9/kg barrier for the first time. Prices ranged from $7.80/kg to a top of $9.24/kg clean for a line of 30-micron hoggets from James and Sharron Scott of Otago.

Another strong result came from Traquair Station growers Charles, Pip and William Reid, whose 31-micron hogget fleece reached $8.55/kg clean.

Adult wool in the 34–36 micron range sold between $7.08 and $7.35/kg — levels that industry veteran Keith Ovens, NZM general manager of commercial, described as unprecedented.

“I’m not sure I’ve ever seen crossbred wool sell at these levels in my 48 years of marketing wool,” he said.

The results followed several years of work by NZM to build global demand for certified crossbred wool, particularly in Asian manufacturing markets. The company says careful management of supply is critical to maintaining premiums as demand grows.

“That demand is coming out of China and India, which are huge markets for strong wool,” Street says. “But it is demand for certified strong wool, not commodity wool.”

For growers willing to invest in certification and quality presentation, he says the additional effort is beginning to deliver results.

“The additional effort is certainly paying dividends.”

Cassidy Grey,Commercial Operations Specialist Zentera,

and Omarama Station owner and Zentera board director Richard Subtil.

A global wool story

Street believes the rebrand positions growers to be part of a larger international narrative around natural fibres.

“There is a moment in the world where consumers are shifting back to what is natural, real and authentic,” he says.

“Wool has been a fibre for hundreds of generations. This evolution allows New Zealand growers to be part of a bigger global story, and that recognition ultimately leads to better returns.”

While he acknowledges that any change can take time for growers to embrace, Street believes the company’s core values will remain unchanged.

“A brand is not just a logo or a name,” he says. “It’s the people, the relationships and the trust that has been built over decades. None of that changes.”