WPI makes second procurement premium offer to growers

12 Jan '11

2 min read

Wool Partners International (WPI) is offering a further round of procurement premiums to growers who can supply high quality wool required by two British carpet manufacturers.

The 70 cents a kilogram premium above auction prices will be offered to eligible growers who can meet the product specifications for Laneve. Eligible wool growers need to be accredited to WPI's Integrity programme and currently paying the Market Development Fee. On the successful conclusion of the Wool Partners Co-operative capital raise, this part of WPI's business will be purchased by WPC and future premiums at that time will only be available to WPC shareholders.

WPI Chief Executive Officer Iain Abercrombie says the early feedback on the new ranges incorporating LaneveTM now being launched in Britain was very positive.

“There is an expectation that the luxury of the finest carpet wool produced ethically in a natural environment, coupled with excellence in design, will delight consumers and capture sustainable premiums for growers.

“Further confirmation is expected at the major European trade show, Domotex, in Hannover in Germany next week when our partners showcase their new ranges.”

Domotex will also provide a platform for WPI, through Wools of New Zealand, to further promote its partnership programmes offering technical and marketing expertise.

“The range of contracts completed last year with leading manufacturers and retail distribution groups in Europe and the United States confirms that the prospect of paying growers the true value of New Zealand's strong wool is achievable – and real progress is being made in reaching that goal.”

“We are at the beginning; there is still much to do. We believe the momentum that is building should give growers confidence that there is a sustainable future for strong wool.”

The terms negotiated with WPI's manufacturing and retail clients are being structured to contain two elements – a premium to be returned to growers and a contribution to the marketing costs of the new ranges carrying the LaneveTM and Wools of New Zealand brands.

“In time, the marketing contribution will substantially replace the need for the market development levy, while premiums above auction returns will become a regular part of payments to growers who can meet the product specifications.”

The latest round of procurement premiums will be offered to growers in the next two weeks. The first round was offered in December.

Mr Abercrombie will be meeting manufacturers and retailers at Domotex before travelling on to the United States for the Surfaces trade show there.

Wool Partners International (WPI)