Our Value Chain Approach

History: Wool has been traded as a commodity for as long as Australia has been producing it (a few years after settlement in 1788).

Under the traditional commodity system, there is little to no information about the future availability of wool. This makes it difficult for brands to plan supply and especially if they require verified non-mulesed Australian merino.

The New Way: To overcome this NewMerino® has developed a unique and tightly managed one to one, value chain supply system involving Australian merino farmers, topmakers, spinners, knitters and retail brands,

Our virtual warehouse

A key component of NewMerino® value chain is our ‘virtual warehouse’ – a database of farmers who provide a forecast of the current year wool production of non-mulesed wool. This provides the opportunity to effectively match demand with timely supply in a manner that will deliver a commercial advantage to the parties in the supply chain.

For Retail Brands

This approach makes it possible to build merino supply chains that create efficiencies and meet the needs of contemporary consumers. These supply chains provide supply security, verification of farming standards, genuine traceability and a solid marketing story based around sustainability and animal welfare.

For Farmers

This approach provides the opportunity to move out of the commodity market and into a supply system which will rewarded them for their progressive approach to merino production.

Link to New Generation Farmers

New Generation Farmers

All farmers who wish to supply must become part of our network of New Generation Farmers.

Growers who have completed the Registration process and maintain a current forecast of their production will be classified as Preferred Producers.

The Table above draws a comparison between the traditional commodity thinking and the value chain approach to supply. It has been taken from a paper by SC Champion and AP Fearne written circa 2007. The paper is titled “Alternative marketing systems for the apparel wool textile supply chain: filling the communication vacuum”.