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

 

Growers Must Decide Investment in Wool Companies


12 August 2001 PR122/01

Growers Must Decide Investment in Commercial Wool Companies

Farmers at NZ Meat & Fibre Producers' forums around New Zealand have given the NZ Meat & Fibre Producers' Executive a clear message that growers want to decide where their reserves are invested

"For years the Wool Board has made investment decisions on behalf of growers - growers are now questioning what they have got to show for it? They are not convinced that the Wool Board will make the best investment decisions," said Mr Taggart, Chairman of NZ Meat & Fibre Producers.

"Of particular concern is Ovita, the biotechnology company recommended by the McKinsey report. This is clearly a commercial company and as such it should raise its capital like any other commercial company - through a capital share issue," said Mr Taggart.

"If the returns from Ovita are going to be so great, farmers will rush to invest. If farmers don't invest then the Board should consider it a clear signal that they don't think Ovita is a wise investment."

"Why is the Board so reluctant to raise capital via a share issue? If the Ovita business proposal is sound and provides the kind of return such a high-risk investment should, the share issue should be over-subscribed."

"Over the past five weeks we have discussed Ovita with farmers around the country. They have given us a clear message that they consider Ovita to be a commercial company and that commercial principles should apply. Many farmers simply do not want their reserves invested in Ovita and believe that the Wool Board should not be taking that decision out of their hands by compulsorily investing reserves in this company."

"The reserves belong to growers, many who have multi-million dollar investments in their businesses. Farmers make significant investment decisions on a daily basis, and now they are saying that they, as growers, want to make these commercial investment decisions and not the Wool Board."

"When is the Wool Board going to start listening to growers?" questioned Mr Taggart.

ENDS

For further information: Murray Taggart (025) 249-9494 or (03) 312-5769 Maxine Yule (04) 473-7269

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Frog Recruitment: Kiwi Workers Reluctant To Make Business Trips Across The Ditch Despite Trans-Tasman Bubble Opening

When the trans-Tasman travel bubble opens today, many Kiwi companies won't be rushing to buy an air ticket, reluctant to cross the ditch to do business. The latest survey conducted by leading recruitment agency, Frog Recruitment of nearly 1,000 New Zealand ... More>>

Tourism: Employers Welcome Back Working Holidaymakers

Tourism businesses gearing up for the return of Australian visitors from next week will be relieved to learn that they will also have access to an offshore pool of much-needed job candidates, Tourism Industry Aotearoa says. Tourism employers around ... More>>

Commerce Commission: Latest Broadband Report Confirms Improved Performance Of Premium Fibre Plans

The latest report from the Commerce Commission’s Measuring Broadband New Zealand programme shows that the performance of Fibre Max plans has improved substantially. This follows a collaboration between the Commission, its independent testing partner, ... More>>

Air New Zealand: Capital Raise Deferred

Air New Zealand has decided to defer its planned capital raise to later in 2021 allowing more time to assess the impacts of recent developments on the airline’s path to recovery. 'We’ve seen some clearing of COVID-19 clouds recently, with ... More>>


Stats NZ: New Report Shows Impact Of Demands On Land In New Zealand

A new environmental report released today by the Ministry for the Environment and Stats NZ, presents new data on New Zealand’s land cover, soil quality, and land fragmentation. The land cover data in the report, Our land 2021 , provides the most ... More>>

ALSO:

Stats NZ: March Card Spending Rebounds Despite COVID

There was a lift in retail card spending in March following a fall in the lockdown-disrupted February month, Stats NZ said today. Seasonally adjusted retail card spending rose by $53 million (0.9 percent), compared with February 2021. Visit our website to read ... More>>

PwC: Outcome Of Review Into Air New Zealand Gas Turbines Business

Air New Zealand has received the report into its Gas Turbines business from independent external advisers PwC. Air New Zealand Chairman Dame Therese Walsh says the report identified a range of effective controls in the Gas Turbines revenue contracting ... More>>