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

 


Direct-to-Scour (D2S) ‘growing at a rate of knots’

10 April 2014

D2S ‘growing at a rate of knots’

Wool growers have rallied behind Wools of New Zealand's Direct-to-Scour (D2S) spot market sales option.

Launched in October last year, volumes under D2S are doubling month on month and have now reached around 350,000 kgs, with annualised volumes expected to reach between 3.5m – 4m kilograms within its first year, about 8% of the market.

Ross Townshend, Chief Executive of Wools of New Zealand told shareholder growers and supporters during the company’s roadshow series of 12 national meetings this week that the system was “simpler and put more money into the pockets of growers than the conventional model. It makes logical sense for growers’ wool to go to the first point of processing which is the scour where it can be core-sampled, independently tested, objectively assessed and fairly priced.

“Up front there is an immediate saving of at least 13c/kg. The price is based on objective assessment of growers’ wool and reflects the prevailing market rate. It is also the growers’ decision whether to accept the price offered or to keep their wool in the system and hope for a price lift in future,” said Townshend. “The pricing acceptance remains totally in the growers’ hands.”

He added that the actual volumes that have come in have grown more rapidly than expected and there is still some work to do on “user-friendliness”, but the process is generally working very well with many repeat customers and the vast majority of our growers accepting the prices offered. WNZ will continue to keep an eye on prices to ensure that they are fair and reasonable and transparent.”

WNZ continues to promote its new contracts, including a lamb’s wool contract with UK upholstery weaver Camira, offering growers pricing in a range of $6.25/kg clean for 0.0% vegetable matter (VM). “Obviously first prize for our shareholder growers is to lock into a supply contract but the D2S spot market option is there for wool that cannot meet the tight contract specifications set by WNZ’s customers.”

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news