The Merino Company (TMC) this week has announced its latest business partner in its quest to offer woolgrowers ownership rights through to retail through their wool pool system.
The partnership will offer woolgrowers ownership rights through to retail, through their wool pool system.
The concept, the TMC, says is not unlike selling into a grain pool, although in the case of TMC, wool can be harvested all year round and ownership continues right through to retail.
Mr Mackinnon said TMC wool volumes through for this season were 40 pc higher than those of last year.
Chief executive officer for TMC, Mark Mackinnon, said TMC would be supplying the wool tops to the Nanshan weaving operation in China.
Like many large Chinese mills, Nanshan can take raw wool right through to the finished garment.
It is home to the former Geelong Wool Combing plant which ironically is a joint venture between Nanshan and EldersBWK, a competitor to TMC.
TMC launched its Nanshan-produced fabric collection last week and TMC said a number of major retailers had already discussed opportunities for their autumn/winter 2009 collection, backed by both UK and US sales partners.
Growers selling into the pool pay a 3pc marketing fee on top of their 2pc AWI wool tax.
“Being able to offer growers 80pc of the payment within 30 days of delivery of the raw wool has made a big difference," Mr Mackinnon said.
"The National Australia Bank coming on board has really boosted the payment system and if growers don’t make more money this way than by selling through auction, they wouldn’t keep supporting us.
"So it’s going well.”
At the Nanshan showroom, men’s suits marketed under its own “Natsun” brand, typically retail for $500-$700.
It would take the Chinese workers at the Nanshan plant at least four months work and all of their pay for that period, to be able purchase one of the garments they manufacture themselves.