McKinsey report on wool industry

The result of the farmer vote on the McKinsey reports recommendations gave a clear mandate for a direction for the industry, Agriculture Minister Jim Sutton said today.

The result, from 53.6 per cent of the estimated national sheep flock, was 91 per cent in favour of the recommendations and 9 per cent against.

Mr Sutton said he was keen to work with the sheep industry to ensure that, as they went into what would be a major restructuring, the baby was not inadvertantly thrown out with the bathwater.

Some recommendations might require more work before implementation, he said, citing the proposal for research and development funding as an example.

"I believe that the industry will find that it needs to spend rather more on research and development than clearly many people think will be necessary in order to maintain the position of wool in the competitive fibre industry."

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