A Canadian company’s expansion into the New Zealand wool industry has received a mixed response.

Global agribusiness giant, Viterra, already the largest buyer of wool on the Australian domestic market, has employed two local wool traders, Rokelay Wool, and Marquet Wool.

Viterra is already handling grain in New Zealand, since it merged with ABB Grain in 2009.

The company’s expansion comes at a time when the fragmented New Zealand wool industry is trying to unify itself.

Federated Farmers Meat and Fibre Chair, Jeanette Maxwell says it will be interesting to see the impact Viterra will have.

"They have taken the opportunity for the fact that there is a lot of change taking place, and the wool market is in quite a state of flux. So I suppose it's an opportunity for them to move in.

"But it's also at a time when we are looking for some consolidation and more unity within the wool industry, and so it just brings in another player, when we would like to be condensing it down."

Jeanette Maxwell says greater competition within the local market, doesn’t necessarily equate to the international market place.

"It's hard to say at this stage as there are so many things in flux right now. Two or three months down the track it could be quite different.

"But you've got Wool Equities coming out and wanting to get into Wool Services International. You've got Wool Services International who've got two shareholders that are in receivership.

"Then you've got Godfrey's appealing the decision for the Commerce Commission against Cavalier having the monopoly, so that's being playing out.

"You've got wool going back into PGG Wrightson, and Wool International are re-grouping, and they will be coming out with their new thing. Then you've got Elders with Just Shorn.

"So there is a lot of things happening at the moment - and to top it all off internationally, of course, New Zealand is a part of the Campaign For Wool."