Solution Unlikely Wool Business Development Plan

Friday, 26 November 1999, 11:48 am
Press Release: Federated Farmers

Wool Business Development Plan Unlikely To Offer "Silver Bullet" Solution

NZ Meat and Fibre Producers (formerly Federated Farmers' Meat and Wool Section) are concerned that some growers are holding back from selling their wool in order to capitalise on the McKinsey & Co investigation.

Chris Lester, Chairman of NZ Meat and Fibre Producers, cautions woolgrowers that while the results of the McKinsey & Co investigation are expected to be made public by the middle of 2000, growers should not expect a "silver bullet" solution to improve wool returns and profitability.

"Any solutions from the investigation are more likely to be realised in the medium to long-term," said Mr Lester.

"Growers would be ill advised to hold wool over in the expectation of increased prices as an immediate result of the McKinsey & Co investigation. Wool held on-farm carries financial costs and other risks."

"My personal belief is that farmers should meet the market, or at the very least, stick to their original selling plans."

Mr Lester is heartened by the support woolgrowers are expressing in the ability of the McKinsey & Co investigation to identify future options and opportunities for the New Zealand wool industry. "This confidence by growers provides the incentive for the Independent Stakeholder Group and the McKinsey & Co team to search out the best alternatives to the current systems," concluded Mr Lester.

ENDS

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