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

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