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

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news