Value Chains and the Virtual Warehouse

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 or the farmers supplying it. This makes it difficult for brands to plan supply and especially if they require verified non-mulesed Australian merino.

Our Definition of a Value Chain

A network of farmers, processors and brands working cooperatively to achieve commercial success for all while maximising efficiencies and delivering a product that meets consumer needs and preferences.

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 registered ‘New Generation Farmers” who provide a forecast of the current year production of non-mulesed wool.

This enables us to know full details about what wool is being grown, when it will be shorn, and when it will be tested and available for sale.

This provides the opportunity to effectively match demand with supply in a manner that will deliver advantages to all the parties involved.

For Retail Brands

This approach makes it possible to build merino supply chains that create efficiencies, provide supply security, and meet the needs of contemporary consumers. These transparent supply chains provide, 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 recognise and rewarded them for their progressive approach to merino production.

Comparison Table – Commodity System – Value Chain