US Crossbred User Drops NZ For South America

20 August 2008

US Crossbred User Drops NZ For South America

A major US buyer of New Zealand wool say it will now buy wool from South America rather than deal with New Zealand, because of approaches made to it by the Wool Industry Network.

A move by the Wool Industry Network to corner the US market has backfired with US customers expressing fears that the new grower hybrid wool company will try to manipulate supply in an attempt to increase prices.

”This customer has said that he is now paying 7 to 9 percent less from their new South American source than he was paying for New Zealand wool,” the executive manager of the New Zealand Council of Wool Exporters, Mr Nick Nicholson said.

“The US company says WIN offered it $2 million in promotional support with a tag that unless they bought their wool from the new wool company, it was very unlikely that they could in future get supplies of New Zealand wool,” he said. “This is an irresponsible strategy executed at considerable long-term cost to New Zealand wool growers.

ENDS

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