The new Wool Group set up by Agriculture Minister David Carter to develop a strategic direction for the wool industry has appointed Colin Harvey as its independent chairman.

The minister formed the group of 18 - who represent growers, exporters and processors - after a meeting in Wellington last year to sort out the crisis threatening the wool industry.

Mr Harvey says he's well placed to assume the role.

Someone's got to do it, the sheep industry's been pretty good for me over the years in the animal health area. The minister suggested it might be a good idea if I put my name forward for it. They needed someone independent, and I guess I bring that independence."

Colin Harvey has made a significant contribution to the animal health industry in New Zealand.

Mr Harvey, who comes from a dairy farming background, formed drench company Ancare in 1985.

When he sold it almost three years ago, it employed more than 70 staff and had an annual turnover of $45 million.

Mr Harvey says he's under no illusions about the health of the wool sector.

"It's an integral part of the sheep industry which is under strain from the meat sector. We've got to get some go forward for wool to make sure we have long term viability for sheep, otherwise we're going to end up being a monoculture of dairy."

Agriculture Minister David Carter is welcoming Mr Harvey’s appointment.

“What the Wool Group needed was an independent chairman with some ability to drive a pretty diverse group of people but show that he’s also got some entrepreneurial skill, and Colin Harvey fits that bill perfectly.”

Mr Carter says it’s no secret Mr Harvey and the Wool Group have their work cut out, but they must deliver for the good of the industry.

“I don’t believe it’s an option for this group to fail. The strong wool industry over past years has been a very important contributor to the New Zealand wool industry and therefore we must restore profitability because  the sheep industry needs it.”