Wool Co, the newly formed entity  set up to raise finance to buy the country’s largest independent wool scouring and exporting company, New Zealand Wool Services International Limited, has sent out an open letter to all New Zealand sheep farmers.

The letter, signed by Cliff Heath, chairman of Wool Equities Limited and Wool Co, urges farmers to attend one of a series of meetings planned around the country through October, to understand how they ‘can assist in the consolidation of the wool industry and ensure consolidation of the wool industry and ensure that wool scouring assets remain in farmer ownership before it is too late’.

He says that wool has become profitable in only the past year, but that profit is at risk because of the proposed sale of NZWSI to Cavalier Wool Holdings Limited.

Mr Heath says that as a very profitable wool trading company NZWSI underpins the international price of wool. But the sale of NZWSI to Cavalier would create a wool scouring monopoly, closure of NZWSI and a reduction of up to $2/kg for all wool sold.

In the letter Mr Heath says Wool Co is working hard to prevent this happening. He says that Wool Equities represents almost 80 per cent of New Zealand’s sheep farmers.