Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Survey Indicates Wool Partners Co-Operative Float Is Sinking


30 December 2010
HORIZONPOLL SURVEY INDICATES WOOL PARTNERS CO-OPERATIVE FLOAT IS SINKING

Over 70 percent of wool growers will not be applying for shares in the Wool Partners Co-operative float, according to an independent survey by Horizon Research that was commissioned by the New Zealand Council of Wool Exporters.

The HorizonPoll internet survey of 618 respondents was conducted between December 22 and 30 and indicates that the promoters of the Wool Partners Co-operative (WPC) float will fall well short of their aim to sell shares to farmers producing 50 percent or more the country’s strong wool clip.

The Wool Partners Co-operative float was launched in late October and has been twice extended, the latest on December 17. According to media reports a further announcement on its future is expected tomorrow or early in the New Year.

Horizon’s survey shows wool growers are keeping their chequebooks firmly closed because they did not feel well informed by WPC’s prospectus, a large debt WPC will inherit from Wool Partners International, and concerns about the directors and management.

While 20.2 percent said they had bought shares, 70.5 percent said they had not bought shares and had no intention of doing so. This indicates the float could fall well short of its stated minimum required subscription of $65 million dollars from farmers producing 50 per cent or more of the country’s strong wool clip.

Most people who read the prospectus did not seek further expert opinion (77.9 per cent) which indicates they did not intend making the investment and 60.4 per cent of strong wool growers said there was not enough information and they would like to have seen more detail.

Only 16.8% percent of all strong wool growers thought the float would be successful.

The qualitative section of the Horizon survey was very damning for the directors and management and highly critical of the prospectus for its lack of detail. One of the biggest concerns listed was the large amount of debt, including a $24 million bank loan that WPC will inherit from Wool Partners International, which is chaired by former Telecom boss Theresa Gattung.

Ms Gattung has been fronting public road shows and telephone conference calls to drum up strong wool grower support for WPC.

Executive manager for the wool exporters, Mr Nick Nicholson said the promoter’s research was from a limited sample of 300 with a large proportion their own clients. In spite of this it would now be quite clear to everybody that the only responsible course of action was to pull the pin on the float.

“The costs for a public issue are continuing to mount and it would be quite irresponsible if the promoters decided to re-issue the prospectus and keep going. Fortunately these float costs are not being borne by the wool growers but by Wool Partners International.”

Mr Nicholson said the failure of the float was not the end of the road for strong wool growers. The was long term unity in the New Zealand industry that was now extending internationally and the Horizon research showed wool growers wanted all sectors to work co-operatively.

“We are taking this on board and looking at ways to launch a service direct to farmers that will give them feedback on where their wool is going, what products it is being made into and how they can achieve premiums for their clip.”

The Prince Charles inspired Campaign For Wool and global promotion through the IWTO that links New Zealand strong wool with co-ordinated promotions in association with other wool growing countries, were exporter-led initiatives that had been shunned by Wool Partners International.

“It is paramount strong wool growers are looked after. When the growers are thriving, the rest of the industry is also doing well and that’s something we all want to achieve,” Mr Nicholson said.

Ends

Horizon Research Limited survey covered 618 farming industry respondents. Of these 205 were strong wool growers. Other respondents included people managing farms, producing strong wool, or people servicing the wool and strong wool industry.

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news