Wool merger plan gets an airing in Hawke's Bay

Richard Young, chairman of Primary Wool Co-op, formed by Hawke's Bay farmers 47 years ago and now proposed for merger with South Island-based Wools of New Zealand.

Ambitious plans for a merger that backers say will transform the wool industry will explained to farmers at three Hawke's Bay stops on Tuesday and Wednesday, as part of a nationwide road show.

The proposal is to merge the Primary Wool Co-operative, owned by about 1400 farmers and founded by a group in Hawke's Bay 47 years ago, and Wools of New Zealand (WNZ), established in Christchurch about 15 years ago and owned by about 780 farmers.

The first Hawke's Bay meeting is in Wairoa's War Memorial Hall staring at midday Tuesday, another will be in the Havelock North Function Centre, starting at 6pm, and the third will be a Wednesday midday gathering at the Dannevirke Golf Club.

The issue goes to the vote among the farmers in November, with Primary Wool Co-operative ahead of the vote becoming the 100 per cent owner of current joint-venture CP Wool, which has its head office in Hastings.

PWC would purchase Carrfields Ltd's half-share, with Carrfields turning its focus to the specialist manufacturing of wool and hemp products through its majority ownership of the NZ Natural Fibres business alongside Hemp New Zealand and other minority shareholders.

PWC chairman Richard Young, who is also chairman of CP Wool, a Carrfields and Primary Wool partnership, says that while it's a busy time for it's an important proposal that has the potential to re-establish wool "not as an ingredient but as a consumer-focused branded product satisfying the needs of New Zealand customers."

Wools of New Zealand chairman James Parsons said that in the first roadshow meetings last week grower support had been "very strong" and several had said it would be the most exciting wool proposal for New Zealand wool in the last 30 years, during which the national sheep flock has been cut by more than two-thirds, to 27 million.