Friday, April 19, 2024

A Fonterra of wool is necessary

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The wool industry needs a real plan to be profitable and the Government’s vision and action report for wool has failed to deliver, according to some industry leaders.
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While the report is a step in the right direction a concrete plan is needed to lift the industry from its doldrums, National Council of New Zealand Wool Interests chairman Craig Smith said.

“It’s a report that tells us what we know, the wool industry in general is in a really bad place.

“What needs to happen very quickly now is another report with a clearly defined strategy then we can put some structure around that strategy,” Smith said.

“It’s been recommended we have a governing body and an executive officer –  that’s structure in place to do what? 

“We need a clear strategy first on how to get crossbred wool back to above $6 a kilogram then get structure in place to fit and drive the strategy.

“The report has got the cart before the horse.”

 Smith is also concerned with the lack of funding detail.

“The (Agriculture) Minister (Damien O’Connor) is challenging industry to do stuff. As an industry there is lots of stuff going on already.

“We will get behind this report when there is a clear strategy to support,” Smith said.

Carpet and yarn maker Godfrey Hirst has invested more than $200 million in NZ, primarily to make woollen yarns and carpets.

Despite being excluded from the consultation there was some hope the wool report might deliver a strategy that would enable industry and government partnerships to better leverage export potential, group chief executive Tania Pauling said. 

“We are very keen to promote our NZ wool carpets both within NZ and to export markets.

“We don’t see this report as a solution. We see it as acknowledgement of the issue, which industry has been aware for some time,” Pauling said.

“It sets out a vision but is delegating to solve the problem to somebody else.

“It seems to us the structure proposed is a repeat of Wool Partners International and it’s silent on funding.

“From my point of view it hasn’t delivered.”

Peter Weber of Feilding-based PV Weber Wools said when wool is worth less than straw you know you are in trouble.

He is concerned at the lack of consultation by the wool group.

“It’s taken two years. My biggest concern is the lack of consultation. Nobody called me, did they call anybody? 

“Right now I’m making more money crushing shit for pellets than selling wool for insulation.

“Advertising must describe wool as product from sheep.” 

NZ carpet and wool company Cavalier Corp chief executive Paul Alston said the report is spot on in identifying opportunities for NZ’s quality strong wool as the preferred choice for leading fabric, carpet and materials.

It is now incumbent on Kiwis to support and own their own industry. 

“We support the call for Government to show greater leadership by incorporating criteria requiring sustainable and environmentally friendly products into purchasing decisions.

“Wool is the forgotten fibre. 

“The world is changing and synthetic fibres have had their day. 

While the report has not shot a silver bullet, NZ Woolscouring supports the concept.

“It’s a good catalyst as the first part of a platform to move from, industry needs that first step,” chief executive Nigel Hales said.

“I would like to think that this report doesn’t just get shelved, the impetus is there to carry on, the next steps are critical, especially choosing the right people to get involved from here.

“Let’s make this a revitalisation of coarse wool farmers and coarse wool manufacturers in NZ along with research and development providers,” Hales said.

NZ First primary industries spokesman and south Otago farmer Mark Paterson suggests a Fonterra of Wool as an alternative model for the wool industry.

“A successful co-operative for NZ wool similar to that of our dairy industry could reap great rewards for our wool farmers,” Patterson said.

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