Woolgrowers opt for the scalpel

By PHILIPPA STEVENSON agricultural editor

An unprecedented number of woolgrowers have opted for the radical surgery option on their $1 billion industry prescribed by the McKinsey Report - but the patient's recovery remains uncertain.

The industry's growers voted 91 per cent in favour of the far-reaching McKinsey recommendations, which would axe the Wool Board and establish new commercial bodies in place of the promotion-focused Wools of NZ for carpet wools, and Merino NZ for the fine product.

Wool Board chairman Bruce Munro says the "excellent" vote gave a clear mandate for change.

His view was supported by Federated Farmers and McKinsey consultant Andrew Grant, despite the fact that 42 per cent of growers registered with the board failed to vote. Mr Grant said traditionally around 25 per cent of growers voted on issues and while it was frustrating that the industry had low participation rates, "by any historical benchmark you can think of this is far higher."

Federated Farmers meat and fibre producers chairman Chris Lester said: "Ninety-one per cent is a very strong indicator that those people who are active in the industry want change and will continue driving it."

It is now critical that the industry, which has paid for and discarded some 20 such reports, does not get bogged down in the detail of the report.

Mr Lester doubted that the industry was in danger of losing momentum despite having "a pretty bloody dismal history of achieving the sort of change that growers have wanted. The real debate is about to start. Now we get into the nitty-gritty of just what shape the change will take."

Mr Grant said the referendum result was "only the end of the beginning" and it was important not to get lost in detail. "It is important to get on with it, understand the transition issues and move with pace, but also with prudence. This industry doesn't have time to muck around."

Mr Munro said that in anticipation of a favourable vote, the board had already started putting teams together to work on business plans for the suggested marketing companies, dubbed StrongWools NZ and FineWools NZ, as well as the sheep genetics improvement company, Ovita, and the research and development group, SheepCo.

He said the plans should be before growers at the board's annual meeting at the end of October.

"Many people had indicated that they were giving it the big tick-off vote - a mandate for change - but they have concerns about this, that, or the next thing.

"So, the process is now to do the detailed business plans and put them up before the growers."

Mr Munro said plans were well advanced on the body, known as the implementation project team, which would oversee the transition from the board to the new commercial model.

Only one person remains to be confirmed on the team that McKinsey recommended be made up of three directors, its chief executive, the chairman of the report supervisory body the Independent Stakeholder Group, and two independent commercial people.

Mr Munro said he had no qualms about the changes and the new research and development body could be the existing board with some modifications