International support encourages Wool Partners Co-operative

25 Jan '11

2 min read

Wool Partners Co-operative Limited director and deputy chairman Mark Shadbolt says he is encouraged by supportive comments made by many industry players towards the Wool Partners Co-operative capital raising.

“Despite suggestions by our opponents to the contrary, industry players we have talked with at the Domotex 2011 Carpet Trade Show in Hannover are very supportive of a New Zealand grower-owned co-operative.”

“Even the prospect of having to pay higher prices for wool is not an issue for them. A common thread in discussions with spinners and carpet manufacturers in Europe is that they are not particularly concerned about the prospect of having to pay higher prices once the co-operative gets up and running and see benefits if the co-operative has a steadying influence on prices.”

Commenting on the recent gains for strong wool, from approximately $2 a kilogram greasy to $5 a kilogram greasy over recent months, Mr Shadbolt says higher prices were not an issue with these international customers, but the speed with which the price has increased was.

“Like any business, manufacturers have to plan budgets, pricing and contracts, and this volatility plays havoc with those. The uncertainty and instability is much harder for them to manage than steady, but higher prices.”

Mr Shadbolt says surprisingly industry players had a high awareness of the launch of Wool Partners Co-operative as a 100 per cent grower-owned co-operative for the strong wool industry in New Zealand.

“They view the co-operative as a mechanism that could bring price stability to the market and to growers and were therefore keen to see it succeed as it benefits everyone.”

Wool Partners Co-operative Limited