“We need the remaining 50% of shareholders to respond to the capital raise so we can resume industry-good activities.”
Osborne said activity has been limited but retaining 50% ownership in Carrfields Primary Wool (CP Wool) is important to ensure a solid future income that doesn’t need levies for future industry-good work.
“The board is confident in CP Wool’s ability to deliver on its five-year strategic plan, which forges a solid path towards a positive future for New Zealand wool farmers.
“We’re investing in the future of our wool and our people and we believe our product and our people have the capability to make incredible changes for the future of our industry,” Osborne said.
But there will be an interval as the wool industry gets back to business after the covid-19 lockdown.
Carrfields managing director Craig Carr said once there’s clarity around when non-essential services can resume there will be more certainty for the CP Wool.
“Wool is not a food product. It’s a slow-moving, durable product and, disappointingly, it has not been included as essential,” Carr said.
CP Wool is also a joint venture business with Christchurch-based NZ Yarn.
“There will be a ripple effect that we expect will have financial implications so it’s what do we need to do to make sure we have a business when it comes out the end of it.
“I think for us the wider concern is the ramifications globally for NZ wool.
“Markets were actually just starting to get more demand again but obviously when factories are closed down in Asia and Europe and Eastern Europe and the United States that has a rattle-on effect to many things.”
As well as the factories it affects their customers like carpet companies, retailers and textile companies.
“So, for us there is a halt, potentially, in buying these sorts of products which has a flow-on effect through the supply chain,” Carr said.
“No one knows but we have to be prudent to think that this halt globally is not going to favour us, which is really disappointing because we were really starting to make some significant headway.
“We were on budget, we have made a lot of new initiatives and put a lot of hard work into driving new markets where we can have a real point of difference.
“It’s a big unknown right now. We’re in uncharted territory. We want to get going while the orders are there.
“It will ultimately come back to consumers and their discretionary spend,” Carr said.
But the agricultural industry has been lucky, Carr said.
“Many of us who are farming or related to farming have been able to keep some wheels turning.
“Commodity prices generally are pretty good and while there’s going to be some pain there will also be opportunity.
“It is driving us to be more innovative, to be more efficient and to look at how we make better use of technology.
“I think we are sitting in a pretty bloody good spot,” Carr said.
