Landcorp Votes "Yes" On Mckinsey Wool Report
LANDCORP-FARMING-LTD
Landcorp Farming Ltd has voted in
favor of the recommendations
in the McKinsey report to
NZ woolgrowers on improving profitability.
Chief Executive
Neil Prichard said today that Landcorp's
management had
carefully evaluated the reasoning behind the
recommendations and was solidly in support of the
direction of
change envisaged.
"Landcorp produces
about 3.5 million kgs of wool each year,
mainly strong
wool. The proposal to establish a new commercial wool
marketing company for strong wool, with both grower and
non-grower
shareholders, deserves full support. There
should be significant
advantage available to growers
from supply through a substantial
commercial company
focussed on improving contractual relationships
with
major carpet and rug manufacturers."
"Other proposals
specifically endorsed by Landcorp are to
establish new
organisations to focus on sheep research and
development
and to capture value from genetic research to improve
sheep performance."
Mr Prichard said Landcorp saw it
as critical that the people
behind each new organisation
moved quickly to produce strategies and
business plans
before growers were asked to specifically commit to
financial decisions on capital structures, levy funding
and
utilisation of Wool Board reserves.
ENDS