Support For Strong Wools Evaporates

Farmers at the North Island leg of Federated Farmers Meat & Fibre Producers' Forums have sent a clear message that they no longer support the Wool Board using reserve money as seed capital for a strong wool marketing company.

"Farmers accept the demise of the strong wool marketing company concept and do not support the Wool Board continuing to pour good money after bad pursuing alternative proposals" said Meat & Fibre Producers Chairman Murray Taggart.

"Farmers will only entertain wool marketing proposals on a strictly commercial basis where they make the investment decision themselves. Groups looking to progress wool marketing proposals should approach farmers directly for funds, just as any other farmer owned co-operative or company does."

"Farmers are suspicious at continued attempts to tap into Wool Board funds by those claiming to have the "solution" to the wool industry," said Mr Taggart. "If a group can't attract direct farmer investment, back door funding through the Board is not an acceptable alternative."

"Several groups appear to be interested in all or part of Wools of New Zealand. Continuing to procrastinate over the company's future is unfair on the organisation's employees and will erode its value," Mr Taggart said. "It's time for the Wool Board to "draw a line in the sand" and establish a firm deadline for the sale of Wools of New Zealand.

"We don't need more consultants' reports and expert analysis - too much has been wasted in this area already. Put the business up for tender and let the market establish its true value. Farmers, if you want a wool marketing company, get your chequebooks ready!"

ENDS

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