Big Save pays big bucks for strong wool
Big Save Furniture is paying farmers more than double the market price for strong wool to use as filler, lining and covering in its beds and sofas.
It is offering $4.50 a kilogram, compared to a market price of less than $2.
The company has bought four sheep and beef farms, totalling 3000 hectares, to ensure a steady supply of the natural fibre for its couches and beds.
Managing director Tom McKimm said the decision to use wool was due to its biodegradability and other attributes, such as being a natural flame retardant.
If sofas and beds ended up in landfill there would be less of a long-term impact.
McKimm said the company would not pass the cost on to consumers. By going direct to farmers, controlling the supply chain and developing the products itself, prices should be maintained.
The price paid to farmers was based on historic prices and discussions with farmers, ensuring it was profitable enough for them to keep their flocks and not lose money.
‘‘One of our goals is that the $4.50 a kilogram price is a minimum price and the market average goes above this. Once this occurs we know we are having some sort of positive impact,’’ he said.
The wool sector has been fighting an uphill battle to compete with cheap synthetic fibres, and prices for the natural fibre have plummeted in recent years.
The Government is working to revive the fortunes of the sector with investment and a strategic roadmap. A number of businesses, including Woolchemy, are finding innovative ways to create new markets for wool.
Big Save Furniture has
worked closely with wool scouring company Woolworks to develop a strong wool product that can be used in furniture manufacture.
Federated Farmers meat and wool chair William Beetham said Big Save Furniture was doing smart business. Demand for natural fibres was beginning to increase again as synthetics fell from favour.
As demand increased, the value would go up and supply would shrink. Creating direct relationships with farmers to secure the supply chain was a way to get in front, as other retailers and manufacturers would have to catch up.
Wool was selling for $2 a kilogram or below, but long term it would need to rise above $6 to make it sustainable and closer to $10 for the industry to thrive, Beetham said.
McKimm said the average price of a sofa was around $2000, but the cost of the wool used was only between $20 and $40. The hope was that as strong wool was increasingly adapted for use in more products, the price would move.
The Big Save Furniture farms would only supply a small portion of the wool needed for the company’s needs, however. It was in talks with other parties for wool supply, with the criteria being around traceability, ethics and long-term direction, McKimm said.
Furniture made with wool components was already for sale at Big Save Furniture from manufacturer EJP and a new range of wool beds would be launched in August. More products were due to be rolled out in the future.
Sales had been above levels initially expected and ‘‘huge’’ growth was expected. ‘‘Our goal is to have wool in most of our sofas, beds and other products over the next couple of years. A number of offshore manufacturers are keen to use our wool layers in furniture manufacturing to sell to other countries,’’ he said.