Buyers back the Bay as broker stands his ground

Richard Kells is the only remaining wool broker selling by auction in Napier.

His family-owned and operated business, Kells Wool, has been headquartered in Hawke’s Bay for the past 40 years and takes pride in the fact that they reliably shepherd high-quality wool through the sales process and achieve good prices. The founder and company director says Kells Wool remains committed to Napier, in spite of the fact two of the biggest wool brokers in the country have departed, centralising their operations in the South Island. It’s what both the buyers and growers want, he says – their support providing a mandate to continue delivering a focused service from a Hawke’s Bay base.

“At first I was thinking I’d follow along and move south. “It seemed that was where the market would be. But it was the buyers who helped me change my mind.”

Kells’ customers shared his concerns on how expensive operating out of Christchurch would be for both broker and buyer. The cost of freight via the Cook Strait ferry had climbed more than 60 per cent due to fuel prices, and transit times for samples to be shipped from Napier to Christchurch was three days, if there were no ferry disruptions, ballooning out to two weeks when capacity was tight. “Whereas we were able to pick up a clip off some trading lambs on a Thursday morning, have it in the Monday catalogue and sell on Tuesday.”

Because Kells Wool’s catalogue is small, “out of towners are able to fly up from Christchurch or drive from Wellington, view the wool in the morning, buy at auction that afternoon and still be home for dinner,” he says.

At the firm’s first auction as the sole Hawke’s Bay broker, the mood was buoyant, with multiple buyers expressing their gratitude that Kells Wool had stood its ground and remained in the region. “Exporters showed their support, and the biggest and best lot achieved the highest clean price of 619 cents. Full credit goes to the grower electing to shear two months early to reduce weather damage – his average return per bale was $857.”

A major factor in Kells’ longevity, he believes, is that his buyers can inspect the wool as soon as it is in the door. They see each sample, they know it’s been tested, and they trust in Kells Wool’s independence from trading in the market. “Our efficiency in post-sale services to our buyers keeps them keen to source wool through us, too,” he says.

The firm isn’t resting on its laurels, however, and Richard Kells says he and his team will continue to innovate They’re already utilising video technology to reach a wider audience. “We’re planning a number of improvements to our warehouse in Pandora and an investment in labour-saving plant and technology. There will also be an expansion into wool product development, marketing and retail.”

“With the ability to source wool from a larger segment of the North Island, and local wool grower support, we will maintain regular Napier auctions indefinitely.”