Wool Board chief executive steps down

By Philippa Stevenson

For the second time in a week, a chief executive of a producer board has quit an industry in crisis.

In a shock move yesterday, Wool Board chief executive Jeff Jackson said he would leave the job in December - the same departure date given by Apple and Pear Board executive Gary Smith who resigned last week.

Mr Smith's resignation followed a collapse in braeburn apple prices. Mr Jackson's departure comes amid some of the lowest prices wool growers have known, and before an annual meeting next month which promises to be torrid.

Mr Jackson said there was nothing behind his reason to stand down after three years other than that he felt it was the right time to seek new challenges within the agri-business industry.

"I've given the wool industry enough of my time," he said.

He made his decision as the annual meeting shapes up with three motions of no confidence in the board. Board chairman Bruce Munro, a non-grower director, is likely to face pressure to resign if a vote succeeds.

Mr Jackson said he was not tempted to stay on because "I think we will manage that process okay."

But Federated Farmers meat and wool section chairman, Chris Lester, said Mr Jackson's timing was bad given likely political instability within the board.

"I respect Jeff Jackson and his decision but there should be a steady hand at the wheel. The industry's problems won't be over by the time he goes."

The board has announced a wool industry development project, likely to cost up to $1.7 million, and has hired consultants McKinsey and Co to examine the industry.

Mr Jackson said his goal was to get the project up and running before he left,"and pass it over to someone else to complete."

Respected by most growers for bringing commercial soundness to the board, Mr Jackson came to the wool industry after 26 years at New Zealand Dairy Group - the last eight as chief executive - and three years heading Affco.

Yesterday, he said the industry's major problem was fragmentation which hindered attempts to commercialise new technology and innovations to provide new products, markets and opportunities.

"The base products are all in decline, except for carpets and rugs which are growing, particularly in the US, but the apparel business is under severe stress."

The aim of the development project was to set growth and profitability targets for wool, similar to those provided by McKinsey and Co to the dairy sector.

The last report of the century could succeed - where many before had failed - because "this time we are trying to get all the political ducks in a row first before we start the project."

"Historically, reports have always failed because the political process has destroyed the outcome."