Deadline close for wool co-op

Photo / Hawke's Bay Today

Wool farmers have one week left to decide whether to back a new co-operative aimed at improving returns.

Subscriptions for 65 million $1 shares close on November 30, with the co-operative needing support from the growers of half the strong wool clip to start operations on January 1.

Wool Partners Co-operative chairman Jeff Grant said the level of support was essential to create an organisation that had size and market power to bring about change.

"Without this level of support, Wool Partners Co-operative would be a minority player with insufficient influence to alter the dynamics of the industry in favour of growers," Grant said.

"Unity among growers is the critical element in the Wool Partners programme to reverse the long decline in returns growers have been receiving."

No cheques from growers would be cashed until a level of 65 million kg of greasy wool had been reached.

Grant was confident the co-operative would meet the 65 million kg threshold to begin operations.

"I said to the guys, you'll know in the first two or three days whether we've got it right or wrong," he said.

"Farmers will soon tell you they don't want to have a bar of it right from the start.

"That hasn't been the conversation we've had in the communities.

"The conversation has been more about what the long-term aim is, what's the capability of the company to do it and more importantly has been is getting 50 per cent enough to get change in the industry."

The number of non-Wool Partners International suppliers attending meetings and expressing an interest in investing in the co-op had been quite high, he said.

"I've been involved in doing agricultural sheep and beef meetings for 15 years. I don't think I've done a road show where I've seen so many farmers stay after and get into groups and have long discussions for up to an hour following the meeting about the proposal."