Wool sector forced to pull together

Published: 8:04AM Tuesday March 16, 2010 Source: NZPA

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Agriculture Minister David Carter has called in Murray Horn, a former Treasury secretary and head of ANZ Banking Group's New Zealand arm, to try to pull together warring factions in the wool sector.

Carter warned when woolgrowers rejected a mandate for a wool industry levy in 2009 that the farmers had not thought through the implications for the sector.

The levy would have provided $6.4 million of funding for Meat and Wool New Zealand, with a similar sum being contributed by taxpayers for research.

Woolgrowers will cease to pay the levy on their fleece from April 16. The move has gutted research and marketing efforts in the sector.

Horn will act as an independent convenor and will call a meeting of wool sector organisations to begin the process of forming a single voice for the industry, Carter says.

"I urge all the players to engage constructively in this process," he adds.

"It is a vital step in ensuring the future of the strong wool sector."

Horn will tackle divisions in the industry, particularly between farmers and exporters.

Some exporters fear the sector will be hijacked by grower interests at the expense of traders.

Meat and Wool New Zealand, the industry board formed after the deregulation of the Wool Board and the Meat Board, is expected to unveil a new name at its annual general meeting in Te Kuiti on March 24.

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