NZ Farmers' online trading resource

Farming News Archive | Newsletter | Farmer's View

Cooperative Marketing of Wool

Greetings Readers

Yesterday’s news item that a new co-operative wool company, Growerco Limited, has been launched as a fully integratedsupply, sales and marketing company owned by wool growers should be good news for an industry that is struggling to know which direction it should take.

Wool reforms with all the emotion and politics that surrounds such a change seems to have been on the agenda for ever. Many a rural industry politician has prospered then foundered on the polarised views of growers.

But principle opponents of change seems to traders who see there businesses at risk should the producers manage to form themselves into a structure with sufficient critical mass to manage and market product in an equitable manner onto a stable market.

Wool producers are more and more seeing wool production as a by- product of meat production as the profits from wool decline in proportion to other farm income.

It is a situation not dissimilar to the dairy industry in the 1930’s. Tooley Street traders offering 4p per pound finally brought about a national approach to the export selling of dairy products.

The result, a slow climb back into profitability and an industry that could market with certainty of supply and eventually earning a reputation for quality and reliability in the market.

The Growerco promoters have a formidable task to get growers to commit but without cooperation in marketing farmers remain many weak sellers being manipulated by the few strong buyers.

Good farming

Roy McCallum

NZ Internet Services Ltd - website developers and website designers New Zealand
All content copyright © 2003 Farmnet | Legal Disclaimer