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

 

Feds hail on-line fibre exchange as useful innovation

Transparency, ease-of-use and the potential for increasing competition among buyers are among the positives of the Natural Fibre Exchange (NFX), Federated Farmers says.

The NFX, which is owned by shareholders Wools of New Zealand and Alliance Group, kicks off the first of its fortnightly on-line trading events tomorrow. (SUBS - TUESDAY, MAY 22)

Federated Farmers Meat and Wool chairperson Miles Anderson sees NFX as an innovation that potentially can stream-line the selling-buying process, raise awareness of wool and reach a wider buyer market.

"Buyers can use their digital devices to participate and don’t need to physically attend an auction.

"It could work in a very similar way to TradeMe, increasing the chances of greater competition among buyers."

It could be argued that the existing system of buyer-seller contracts has advantages of maintaining a more direct relationship between producer and buyer, and greater ability to demonstrate reasons for a premium based on the product’s ‘story’ and environmental credentials, but the contract option still remains.

"This just adds another avenue," Miles said.

NFX has already secured commitments for 6.5 million kilograms of the nation’s crossbred clip out of the 150 million kilograms New Zealand farmers produce each year.

"It’s only natural there will be some initial scepticism around how it will work and whether it will last. I think there will be other brokers and major players keeping a close eye on how the first few on-line trading events go," Miles said.
"Reducing transaction costs is a plus, as that means there is more money available for the producer. Federated Farmers wishes the new venture every success."
ENDS



© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Reserve Bank Holds Rate: Dollar Jumps As Potential Hike Wrong-Foots Traders

The New Zealand dollar jumped just over one US cent after the Reserve Bank's bias towards eventually hiking interest rates - rather than cutting them - wrong-footed traders who were more wary about global risks. More>>

ALSO:

Dolphins, Albatross, And... Four Endangered Sea Lions Dead In Nets In One Week

Forest and Bird: Four endangered NZ sea lions have been killed in commercial fishing nets in one week, making this the third day in a row endangered animals have been confirmed dead at the hands of the commercial fishing industry. More>>

ALSO:

Solar: Falling Battery Costs May Outstrip Transpower Projections

Falling solar and battery costs may already have overtaken prices assumed in Transpower’s latest modelling of the future power system, the Sustainable Energy Association of New Zealand says. More>>

ALSO:

Dire Deals: SAFE Salutes Short Shrift For Saudi Sheep

SAFE applauds the Government’s decision to cancel the controversial Saudi sheep deal, a plan by the previous Government which was to include a $10 million slaughterhouse in the Saudi desert. More>>

ALSO:

Nelson Fires: Extended Emergency

A combination of benign weather and outstanding fire management has seen the risk posed by the Pigeon Valley fire significantly reduced for some areas. More>>

ALSO: