Wool Industry Issues
Farm-gate wool prices have surged over the past year. However, Federated Farmers cautions that the increased reward to farmers, while long overdue and gratefully received, should not be taken as a signal that the sector is in a healthy state. Rather, as with the meat industry, the current position has arisen from a number of factors, including a reduced supply situation. The core problems that beset the industry, such as lack of sector unity, still remain to be addressed.
It is however pleasing to be able to report that there are a number of initiatives underway to place the wool industry on a profitable and sustainable footing.
The first of these is the Wool Unity Group set up to develop a sense of unity in what is a hugely fragmented industry. Federated Farmers is on the Group representing producers.
Operating in the commercial space, the Wool Partners Cooperative (WPC) attempted to achieve a commitment from wool growers that would have enabled the company to acquire the assets of Wool Partners International and its affiliates from PGG Wrightson. Its bid was unsuccessful but it appears that the new WPI board is still supportive of a strategy for grower ownership. We therefore expect a new proposal to be developed by WPC for farmers to consider.
The Campaign for Wool (CFW) is an industry initiative convened by HRH the Prince of Wales focused on promoting the much underrated properties of wool. In early June CFW launched in New Zealand Wool Week with a number of events.
Finally, the Commerce Commission has recently determined that the application by Cavalier Wool Holdings Ltd to acquire Wool Services International should be allowed to proceed. This decision is being challenged, however.
Federated Farmers wants
- All wool sector stakeholders to realise the value of working together for the benefit of the sector.
Spokesperson
Federated Farmers Wool Industry spokesperson is national board member Jeanette Maxwell, you can contact her at jmaxewll@fedfarm.org.nz.
