Mid Micron Wool NZ On Eco-effectiveness
16 November 2001
Mid Micron Wool NZ Incorporated has decided at this stage not to proceed with a strategy that would incorporate eco-effectiveness in the industry.
It follows a vote last month by mid micron woolgrowers that endorsed MMWNZ Incorporated as its representative body to validate the proposed strategic direction.
The Chairman of the Mid Micron Taskforce, Martin Paterson says the decision not to proceed with the strategy followed a due diligence evaluation of the markets and the Environmental Protection Encouragement Agency (EPEA).
“It was absolutely clear that the proposed strategy was the appropriate direction to take,” says Martin Paterson.
“However, there are a number of aspects that make it inappropriate to proceed at this stage.
“This strategy would in essence be a world first. This has cost and timing implications limiting the justification of a business case, as it requires the creation of eco-efficient supply ahead of market demand.
“In addition legal, contractual and operational constraints were identified, making it inappropriate to proceed with commissioning EPEA and the subsequent business case.
“However, we firmly believe the strategy is the way forward and the EPEA has been invited to re-submit a proposal for consideration if it is able to resolve key issues,” he says.
Martin Paterson says Mid Micron Wool NZ Incorporated will continue to develop activities arising out of the taskforce as follows:
ƒæ Commercial options with the Wool Research Organisation of New Zealand (WRONZ) to identify and extract value from existing Intellectual Property
ƒæ Commercial opportunities with existing value chain members
ƒæ Supply alignment opportunities out of the Taskforce activities, whereby companies are looking to improve the quality and consistency of supply of New Zealand mid micron wool. These organisations are also looking to expand their operations, and subsequently increase their wool consumption, and is looking to a more direct supply alignment to meet the price required. It is highly appropriate to consider inviting these organisations to visit New Zealand to explore these opportunities.
ƒæ Ways of addressing the issues raised by a Chinese delegation when it visited New Zealand last month.
“We are confident that Mid Micron Wool NZ Incorporated has a role to play in facilitating closer supply alignments and relationship issues on an industry good basis”.
“We will continue to work on behalf of all mid micron wool growers for the benefit of the industry going forward,” says Mr Paterson.
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