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Source: NZPA / R Tucker -
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Agriculture Minister David Carter is to set up an industry taskforce to look at how the sector can increase demand for wool, and boost prices paid to woolgrowers.
It followed a meeting on Thursday with 30 leading representatives of the wool industry in the wake of a vote by farmers to axe the levy they pay Meat and Wool New Zealand, which provides technical advice to users of wool.
Carter said the taskforce would be picked over the next couple of days and would report back early next year.
Despite differences of opinion between some parties at the meeting, there was agreement that the status quo was unacceptable and could not continue, he said.
When farmers recently voted in favour of axing the levy, Carter expressed concerned that those farmers had not thought through the implications for the sector.
"Not to support the continuation of a wool levy is disappointing and will create difficulties for the industry," he said.
The levy would have provided $6.4 million of funding for Meat and Wool NZ, but farmers apparently objected to the money being spent on wool promotion.
On Thursday, Carter said the taskforce would look at what can be done to increase the demand for wool products, which has dropped almost $2 billion from their export value since 1995.
The minister also said there would have to be another vote to set up a new levy.
There were serious implications in not having an industry good body acting for wool farmers once the present levy runs out in April next year.
