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

 


Give other options a ‘WIRL’ – Wools of New Zealand

Give other options a ‘WIRL’ – Wools of New Zealand


Wool research behind the farm gate was important but needed to be attached to work already being undertaken in the wool industry, says Wools of New Zealand in its wool levy position paper released today.

The grower owned wool marketing and sales company says while it is important for all growers to have their say, they need to be “armed with the facts relating to costs, benefits and possible alternatives before they vote.”

While WNZ agrees there is a need for additional training and tech transfer both inside the farm gate and beyond, it believes these functions can be provided by existing agencies such as Tectra and AgITO while there were also other options to creating yet another structure in an already cluttered industry.

“WNZ would go as far as recommending that the Wool Industry Research Consortium (WIRL), as an established agency, manage the collection and distribution of public private money investment into R&D and broaden its mandate to provide the functions and outcomes viewed as necessary to the industry, including leadership.

“The Wool Industry Research Organisation (WRONZ) fund sits at approximately $35 million as a legacy of the Wool Board. This fund is growing in size as a result of prudent fiscal management. Utilising returns from this fund alongside public and private funding, WIRL focuses on investment in R & D which helps increase the value and competitiveness of New Zealand wool through innovation and new uses for wool.”

Mark Shadbolt, chairman of WNZ says at this stage it is unclear why more research funding is needed on top of the WIRL fund. “The current fund – plus matching grants from other sources – should be more than ample to cover reasonable research needs for the foreseeable future.

“Utilising an existing wool industry structure such as WIRL which represents the whole of industry including growers, has the ear of government and can leverage grower funds against public and private funding, should be seriously considered. In our view this is superior to creating yet another structure in an already cluttered industry. Additionally, WIRL has a well-represented governance structure and administration function.

“Funding is also available from the MPI’s Primary Growth Partnership, which already supports the NZ Sheep Industry Transformation Project, undertaken with NZ Merino, as an example.”
WNZ believes there are three key issues for growers in relation to the proposed wool levy:

- What extra returns will a levy provide in the short to long term

- Do we need another structure in place at all (as WIRL is already established and funded)

- Why the current levy on sheep can’t be expanded to cover wool?

Mr Shadbolt says the New Zealand strong wool industry can only capture value through commercial sales and marketing initiatives that reach right through the value chain to the consumer. “Levy spend will not achieve this.

“Before growers vote they should satisfy themselves that a generic industry-good model will provide any direct commercial benefits. We are unable to point to any examples where generic marketing has yielded the kind of benefits the Wool Levy Group are looking to achieve.

“It is noteworthy also that since the wool levy was rejected in 2009, growers have enjoyed improving commercial returns on the strength of market penetration, improving industry collaboration, grower commitment and investment, leadership and government support. This during a period of rationalisation and a declining wool clip nationally.

“What a levy should not be, is a crutch to abandon this new found sense of purpose for our industry.”


Ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Post-Post: Brian Roche To Step Down As NZ Post CEO

Brian Roche will step down as chief executive of New Zealand Post in April 2017, having led the state-owned postal service's drive to adjust to shrinking mail volumes with a combination of cost cuts, asset sales, modernisation and expansion of new businesses. More>>

ALSO:

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news