Wool Partners International Ltd., a New Zealand wool marketer, has signed supply agreements with two U.S. carpet makers in a strategy promoting the environmental qualities of the nation’s product.

California-based Bellbridge Carpets and Georgia-based Glen Eden Wool Carpet will buy fiber supplied under Wool Partners’ new Laneve sustainable brand, the company said today. More “high-end” manufacturers will be signed up in coming months, Chief Executive Officer Iain Abercrombie said.

New Zealand farmers produce more than 40 percent of the heavy-grade crossbred wool used by the world’s carpet makers. Wool Partners, half owned by PGG Wrightson Ltd., was formed last year to help stem the slide in farm-gate prices and give farmers greater control of their product in overseas markets.

“We are expecting to get more volume because we believe we are adding greater value and integrity to the product,” Christchurch-based Abercrombie said on a conference call with journalists.

Farmers supplying under the Laneve program must meet strict standards for animal welfare and environmental sustainability, Abercrombie said. In return, carpet makers receive an assured supply of fiber so they can develop new products aimed at more affluent, environmentally-conscious consumers, he said.

New Zealand wool prices fell to a 30-year low in April as the slump in global construction sapped flooring demand for new buildings and home renovations. Exports dropped 17 percent to 128 million tons in the 11 months ended May, led by a 25 percent drop in the U.K., according to Meat and Wool New Zealand data.

‘Green’ Products

While the recession in the U.S. has slashed demand, there is a growing market for “green” products, BellBridge President Bruce Bell said. Companies and government agencies are also increasingly required to demonstrate the sustainability of their activities.

“The great thing about the high-end market here is that it does appreciate and will pay for style and quality,” he said on the conference call.

Source: Bloomberg