Friday, March 29, 2024

New leader predicts strong future

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Primary Wool Co-operative shareholders have backed the board, voting to support of the organisation’s proposed future direction. At the annual meeting in Dannevirke shareholders provided overwhelming support for two key resolutions that incoming chairwoman Janette Osborne says cement a strong footing for the future. 
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Osborne was elected to take over following 44 years of service by outgoing chairman Bay de Lautour.

Farmer shareholders voted in favour of maintaining PWC’s 50% shareholding in CP Wool.

There was also 98% support for a constitutional change enabling a capital raise to back CP Wool’s five-year strategic plan.

“It was fantastic to see farmer shareholders emphatically supporting the future direction of their co-operative and the New Zealand wool industry as a whole,” Osborne said.

“We’re thrilled to have established such a strong platform for the future.

“At a time when wool prices are presenting significant challenges to farmers our shareholders have demonstrated their optimism about several industry initiatives as well as supporting greater industry cohesion to achieve positive outcomes.”

Osborne said one of the biggest topics of discussion was the high volume of wool on hold and the financial impact of that. 

“However, the success of the work that has been done to achieve a significant reduction in losses from the previous year was also recognised with the outlook considerably improved for the coming year.”

While the cumulative average return on investment to shareholders in the three years to June 30, 2018, was 38%, Osborne said a period of consolidation for the next two years is expected.

“We are proud to still be able to provide a positive return on investment even in these difficult times.” 

The board also aims to continue the tradition of strong South Island farmer representation with steps being taken to achieve that in the next few months, Osborne said.

CP Wool chairman Craig Carr said the company’s five-year strategic plan covers several key areas of focus including raising awareness among consumers globally of NZ wool as a valuable and versatile natural fibre. 

CP Wool is also investigating the huge potential of hemp through its subsidiary, NZ Yarn.

“Our team has delivered some tremendous achievements over the past couple of years, which have laid a solid path for the future. 

“These include new international partnerships, which are showcasing NZ wool on the global stage.

“CP Wool, the Carrfields group and the Carr family are very proud to be involved in a joint venture with PWC, which is an exceptionally strong farmer group,” Carr said.

“The 19.7 million kilograms (of wool) that PWC shareholders transact through CP Wool each year is a credit to the leadership provided by both Bay (de Lautour) and Howie (Gardner) over the years and we’re looking forward to further developing our partnership with PWC as we embark on a very exciting future for natural fibres globally.”

In a moving account of the evolution of PWC, de Lautour recalled how the 100% farmer-owned co-op had grown from 400 farmer shareholders each contributing $400 to now being NZ’s only farmer-owned wool co-operative with 1409 shareholders.

PWC was formed in 1974 by a group of farmers to increase returns for wool growers and invest in the future of the NZ wool industry.

Shareholders applauded de Lautour’s service and leadership to the co-operative. He will remain on the board as a director.

Retiring director Howie Gardner was also recognised for his significant contribution over his 25 years of service to the boards of PWC and previously CRT Wool.

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