Saturday, March 30, 2024

Feds vow to back a new wool levy

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A compulsory wool levy is likely to be the only saviour for an industry on its death bed, Federated Farmers meat and wool chairman Miles Anderson says.
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The federation’s meat and wool council has voted to support a compulsory wool levy but only if the cross-industry Wool Working Group (WWG) comes up with a clear, practicable and compelling blueprint for lifting wool’s profile and returns.

It says it has already secured Government support.

Anderson said the WWG recognises the need to support manufacturers who are coming up with new and innovative uses for wool to get those products to market here and overseas and ultimately to lift returns to farmers out of the doldrums.

“Without that plan we’ve got an industry facing death by a thousand cuts. 

“My fear is that the next time there is a downturn in sheep meat prices we’ll lose a critical amount of breeding stock from the sector and ultimately we could see a hollowing out of rural economies with mass tree planting on productive farmland.”

Delegates from the 24 Federated Farmers’ provinces meeting in Wellington agreed that unless a collaborative plan for wool research, development and marketing is formulated and widely backed the death-knell for the crossbred wool industry will be sounded.

The WWG, initiated by Agriculture Minister Damien O’Connor, and made up of farmers, buyers and major wool product maker representatives, has since its establishment in July last year been laying the groundwork for a strategy aimed at better promotion to consumers of wool’s superior qualities over synthetics. 

The WWG has assurances of Government support for an initial period to set up a governance and staff structure to bed in an industry-agreed plan.

Anderson said his council’s vote to advocate for a compulsory wool levy pending a proven plan and structure is to show that farming leaders are committed to the cause.

“In the last decade two earlier farmer votes on a wool levy were not successful for different reasons. 

“Our reading of farmer sentiment is that there is widespread recognition that there is now urgency for the entire sector, farmer through to manufacturer, to get on the same page and win the market share this great fibre deserves.

“There is a lot more detail to sort out, including how manufacturers should contribute funding to the cause but our signal to the WWG is that if they come up with a workable plan and structure to drive improvements Federated Farmers will join the push for a referendum to secure a levy to drive progress.”

The council also voted in favour of more money for the Wool Research Organisation of NZ (WRONZ)) to do more research and development strong wool.

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