Shop Around For Best Shearing Rates

28 July 2000 PR83/2000

FEDERATED FARMERS URGES FARMERS TO SHOP AROUND FOR BEST SHEARING RATES

Chris Lester, Chairman of Federated Farmers Meat and Fibre Producers, today encouraged woolgrowers to shop around for shearing contractors.

"Many shearing contractors are raising their contract shearing rates in line with the recommendations of the Shearing Contractors' Association Conference earlier this year," Mr Lester said.

"These price increases come at a critical time for woolgrowers, who are not enjoying the higher prices currently being received by their meat producing colleagues."

"Some shearers argue that wool growers are generally also meat producers and can therefore comfortably meet the increases in shearing prices. This is totally irrational."

"The two product outputs are quite separate, and most farmers assess their input costs against returns from separate on-farm enterprises. Farmers are reluctant to distribute input costs for one output across different production areas. This practice would distort the profitability of the different production activities."

"Woolgrowers are still able to, and should, negotiate their shearing rates, and I would strongly advise them to obtain quotes from different contractors to obtain the best available deal," concluded Mr Lester.

ENDS For more information: Chris Lester 025-978-424 Maxine Yule 04-473-7269

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