New Zealand's integrated fibre industry reached more than $926 million at the farm gate in the first comprehensive assessment of wool, harakeke, hemp, hides, mohair and biomaterials.
The figure comes from research led by Fashion & Textiles New Zealand with funding from the Agricultural and Marketing Research and Development Trust. It forms early outputs from the Future of Fibre Aotearoa project.
The study treats the sector as a single ecosystem for the first time. A full Foundational Fibre Report is due in August 2026.
New Zealand produces about 171,000 tonnes of raw fibre each year. This volume equals roughly 6,600 fully loaded 40-foot shipping containers.
Wool at the core
Wool makes up the bulk of output. Annual wool production stands near 120,000 tonnes, with 80 to 90 percent classified as strong wool.
Export revenue from wool and wool products reached $549 million in 2024. New Zealand ranks as the world's third-largest wool producer and accounts for about 9 percent of global output.
Sheep numbers fell to 23.3 million by June 2025. This marks a sharp decline from peaks near 70 million in the early 1980s.
The value-chain gap
The research highlights a clear value-chain leakage. New Zealand imports approximately 116,000 tonnes of yarn, textiles and apparel annually. Domestic manufacturing totals about 93,000 tonnes, yet exports reach only 11,000 tonnes.
A kilogram of greasy wool worth $2 at the farm gate rises to about $8.50 per kilogram once processed into a garment, according to the research. Retail value reaches $37 per kilogram.
"It's about building the bridge between the incredible fibre that we produce and the customers that want premium values led, authentic, quality products. We know we can produce those as well, so how do we build the bridge?" — Jacinta Fitzgerald, Chief Executive, Fashion & Textiles New Zealand
Jacinta Fitzgerald, chief executive of Fashion & Textiles New Zealand, said the goal is to connect raw production with premium demand.
Sector alignment and outlook
AGMARDT general manager Lee-Ann Marsh noted the review provides a foundation for sector growth. It aligns with goals for a regenerating environment and resilient food-and-fibre supply chains.
Applications for strong wool now extend beyond apparel into interiors, technical textiles, acoustic materials and biomaterials.
The August report will outline pathways for higher-value domestic processing. This could reduce reliance on raw exports and support regional economies in Southland, Otago, Canterbury, Hawke's Bay and Gisborne.
Government priorities include value-add in the primary sector and circular economy principles. The baseline figure allows future measurement of progress.
