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Federated Farmers welcomes The Wool Company Limited
16
May '08
Federated Farmers Meat & Fibre section chairman, Keith Kelly is welcoming, in principle, the formation of a new company, The Wool Company Limited, to manage New Zealand's coarser wools. But he says he needs to see more detail before giving it the green light.

PGG Wrightson has announced the sale of its wool operations, except its shareholding in Merino New Zealand to the new entity for a net $46 million.

This includes the niche wool exporter, Bloch and Behrens which it recently acquired.

Keith Kelly says while the move is said to be part of the 'Model for Change' concept, he needs to be convinced that this new arrangement will work for the benefit of the nations producers of coarser wools.

He says if this proves to be the case then growers will be supportive.

In the meantime he is seeking more information on the new arrangement.

Federated Farmers of New Zealand

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