Carrfields Primary Wool is an equal joint venture between Carrfields and farmer-owned Primary Wool Cooperative. CP Wool is also a major shareholder in the NZ Yarn wool-spinning business in Christchurch.
The research arm is involved in several new developments which are gaining attention and are at various stages of testing.
These include wool-and-hemp blends for use in interior floor coverings and apparel, thermo-packaging for food to replace single-use plastics, and geotextiles which are used as weedmats on large projects such as the side of motorways.
Plant-based natural carbon composites are also being developed to replace stiff composite materials used in products like tennis rackets and snowboards.
McKenzie said the wool-and-hemp blends and other hybrid products have huge potential and are unique to New Zealand.
"Hemp fibre dyes differently to wool so clever designers can create quite stunning effects.
"These sorts of products are attractive to the luxury end of the market, and used to carpet expensive homes and the floors of private jets," he said.
He said while hemp could likely be grown anywhere in New Zealand, "including where the illegal cousin grows well", the challenge for farmers trying to get into the new industry is to develop the right methods of harvesting the tough fibre that is similar to flax.
"Carrfields planted 1000 hectares of hemp in mid-Canterbury last year and it was grown successfully, but we have had to significantly modify machinery to be able to harvest it," McKenzie said.
For Northland's sheep farmers, the quandary of what to do with their wool production remains a huge challenge.
Some farmers have decided to hold back their wool, hoping that prices might improve when already poor prices collapsed.
Wool merchant Shaun Ryan, of Manukau Wools, who deals with a lot of the Northland clip, said there "is a big gap between the shearing bill and the wool cheque".
The reduced number of sheep in Northland has meant gathering the wool from the region is an exercise in cost-efficiency. "The quantity is a fraction of what it was five years ago and it takes a bit of organisation to retrieve it."
He said he stakes his reputation on providing an honest interpretation of the market for farmers so that they can make informed decisions.
"The situation worldwide is really difficult and I don't see any improvements on the horizon. The disruption of Covid-19 has added a lot more challenges in putting together deals with our clients overseas."
He said New Zealand's wool prices are entirely driven by the global influences.
Ryan said the long reliance on the woollen carpet industry has meant a losing battle against the heavy competition from synthetic carpets and other choices of floor coverings.
"Home builders today have a lot of choices, including synthetic carpet, tiles, linos, wood and polished concrete.
"Heat pumps and better heating options has meant all of these options are now being used, where once there would have been carpet, and usually wool carpet.
"One positive aspect now is that there may be a subtle shift back to woollen carpets as people who have been sold on attributes of synthetic carpets are now starting to think about the plastic content of synthetics and how that affects the environment. It's like thousands of plastic bags on the floor. Wool is better at regulating moisture in the home and is biodegradable.
"It's a subtle shift against a rather big tide though."
Ryan is constantly dealing with the rapidly changing climate, with no one in a buying mood and a lot of product sitting around. Orders are being cancelled, deals renegotiated and payments deferred. He deals with companies in about 30 countries and has been finding that even with an order placed there is no certainty that the deal will be successful.
"Mills are disappearing in these countries, and sometimes where you would not expect it.
"The disruption is right across all markets. All we can do is try and become more efficient.''
Despite this, Ryan said he remained hopeful for the industry and the potential of new products being developed.
Simon Averill, CP Wool national wool manager, shares his optimism for the future of the industry.
"The low wool prices are putting pressure on everything and the effects of Covid look like they are going to be with us for a long time. Farmers need to keep the wool moving as the colour goes off if it is kept too long in the shed."
At the end of August the average prices for strong micron crossbred wools compared to the last sale in July were all down. Crossbred fleece was 2 to 3 per cent cheaper, second shear 2 per cent cheaper and oddments 3 to 5 per cent cheaper.
"In more recent sales we have unfortunately seen a further decline in prices.
"With the drought as well, there has been a lot working against us. It's really not a level playing field."
However, on social media he has noticed a resurgence of wool awareness and its many associated attributes are beginning to be recognised.
"Wool is natural and renewable, a fire retardant, biodegradable, breathable, durable, easy care, multi-climate, a natural Insulator, elastic and more," Averill said.
"Even the craft shops have been reporting an increased demand for knitting patterns and woollen yarn as people tried to find new hobbies during lockdown.
"We need to try and be positive as wool still has a huge future."
