Wool growers' co-op launched

A new farmer co-operative aims to unite half the country's strong wool production and raise at least $65 million to help improve returns.

Wool Partners Co-operative chairman Jeff Grant said the launch provided an opportunity for growers to take control of their industry and work together to improve returns.

"Until now, the strong wool industry has been fragmented, and as a result it has not been able to stop the long-term decline in prices now threatening its viability," he said. "We can now choose to work together to put those days behind us."

A prospectus registered yesterday offered farmers a $1 share for every kilogram of greasy strong wool, with payment of 20c a kilo upon subscription and four annual calls of 20c a kilo starting in May 2011.

"The offer will proceed only if there is majority support from growers who collectively produce more than 50 per cent of the strong wool clip," Grant said.

The first two 20c instalments would see the co-operative receive $26 million, of which $17.7 million would be used to buy assets from Wool Partners International.

Director Mark Shadbolt said if farmers did not take up the offer they would be "sending a signal they want to go broke slowly".

The prospectus will be open until November 30, with directors planning 100 roadshows throughout the country.