A Stalwart of Hawke's Bay farming and the wool industry has joined a growing list of agricultural luminaries urging growers to unite in the face of vocal opposition to plans for the Wool Partners Co-operative.
David Hildreth, who has a degree in agricultural commerce from Lincoln, runs a 2600-ewe romney stud on remote Glen Ross Station west of Napier, and shares a family passion for wool and sheep-breeding dating back more than half a century.
He chose to speak out after further WPC opposition from Wool Exporters Council chief executive Nick Nicholson.
Mr Hildreth said: "It's a tragedy where the wool industry has gone in the past 20 years.
"In 1990 we exported $1.8 billion worth of wool and in today's values that should have grown to $2.8 billion.
"Instead we have shrunk dramatically to less than $600 million."
The price of carpet had more than doubled but returns to growers had halved.
"Now less than 4 per cent of the retail value of a carpet is the wool content," Mr Hildreth said.
"It is unbelievable how such a fantastic natural fibre with so much potential in this sustainable and green-focused world has declined in value."
"We have left it to others in the wool industry to work on our behalf to improve values, but this certainly has not happened."
Mr Hildreth said Wool Exporters was more interested in "sourcing cheap product" for overseas clients than working for the good of New Zealand farmers, and that "their businesses are about margins and volume".
"Growers need to take control of the wool industry and the only way to do that is to form a co-op," he said.
"They are a proven structure that maximises returns to growers and shareholders. The top 200 co-ops in the world turn over more money than the top 500 companies on the Forbes 500. "The greater the market share of a co-op the more power they have."
Mr Hildreth said that co-operatives also need 100 per cent supplier commitment and loyalty.
"A huge amount of effort has gone in to forming Wool Partners Co-operative and this provides us with a fantastic opportunity," he said.
"Although investment is required it is not a huge commitment in regards to the potential returns and asset growth. Following the models of Icebreaker and Fonterra we can focus our spending on the retail end and educate the world on the great attributes of wool."
Wool carpets would only have to increase in value from $200 a linear metre to $208 a linear metre and the wool price would have doubled, he said.
"The potential gains are huge so if this co-op is to get the necessary support then within three to five years the price of wool to growers will easily reach $8 to $10 a kilo for the premium end.
"Your investment in Wool Partners could have doubled in value. If we do not take ownership of our industry then there are certain overseas entities that might. That would not be good for us."
Growers have until February 16 to decide whether to subscribe to the WPC float, at a cost of $1 a kilo of greasy wool produced.
A 20 per cent payment is sought up-front, with the rest staged over the next four years.
WPC is seeking an investment of $65 million, representing the equivalent of half the national clip, but says it had approval to go ahead at less than that level if it were considered practicable.
Co-op seen as essential for woolgrowers to get control
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