Silkworm farmers either collect eggs or stage 1 silkworm larvae and deliver cocoons. I'm not certain if the farmers boil the cocoons or leave that to KBLB, but they would not be involved in the reeling process.
This is not new reeling equipment, it's just a contractor with higher tech reeling equipment. KBLB will produce either eggs or 1st stage instars to send to contract cocoon producers. KBLB will then collect the cocoons from the contracted cocoon producers and send it to contracted reelers. These higher tech automatic reeling machines are just a more efficient way of reeling the silk. It's nice to see that they can reel spidersilk on automatic reeling machines instead of having to do it manually. It was questionable whether this could be done with the different (finer) properties of spidersilk and other factors.
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