KEY POINTS:
Romney breeders are establishing their own marketing brand and company to buy wool and market manufactured goods.
Trading under the brand New Zealand Romney: Pedigree Wool of Substance, breeders intend to champion romney wool as a "superior, strong wool brand in the international market".
New Zealand Romney (NZR)
would operate as a single desk trader, buying 100 per cent romney wool and marketing manufactured goods, said chief executive John Bates.
It already has a small market in place supplying wool for Nepalese carpet which will offer premiums of $10 a kilogram for 100 per cent romney.
All wool supplied has to be accredited as 100 per cent romney, which NZR president Graham Senior said could mean suppliers bought rams from association members.
The breed association represents 130 breeders supplying rams to about 4000 commercial sheep farmers.
Bates said the move was in response to the downturn in prices for meat and wool and to ensure the sheep industry remained viable.
"New Zealand Romney has the potential to have a huge positive economic impact for romney farmers. Our goal is for our ram clients to receive premium returns for buying New Zealand Romney, not just in the meat industry but also the wool industry."
By retaining ownership of the wool, Bates said NZR would be in a position to maximise returns.
"Unless we can improve wool prices to between $6 and $10 a kilogram, then other farming options will invariably be more attractive."
The venture has found favour with Wool Industry Network manager Mike Jones, who is heading a review into the future of the industry.
Jones, who hopes to have his report ready by the end of this month, said he supported the venture especially as it involved a sector with scale and size.
"Anything which links producers of wool to the end market is great," he said.
Bates said there were opportunities, it was just a matter of finding and utilising them.
"The huge challenge in front of us is to convert the opportunities out there and start moving enough wool that it will make a difference to our industry while maintaining the price level that our farmers need."
The Nepalese rug market was the start and research and market development was being done to identify other opportunities that built on the qualities of Romney wool.
"While the initial markets are relatively modest, we are researching the unique qualities of romney wool to identify future, potential markets."
Meanwhile, Jones said his report would transform a strategy document to a model for change built around key initiatives.
Those initiatives were based on four principles.
They were better co-ordination of wool marketing, aggregated wool, consolidated volumes and unified growers.
Jones said he was pleased with the co-operation and support for the network at all levels of the industry.
"At every level we have dealt with, from growers to the end markets, discussion has been all about how to make the industry strong and how to make the industry viable."
- Otago Daily Times
