The deadline for woolgrowers to make a decision on the industry’s future is just a week away, while leaders of the new co-op wait nervo
usly.
The drivers behind the Wool Partners Co-operative, which is seeking half of the country’s sheep farmers to commit $65m, sent out a letter to potential members outlining the current situation, and what they now need.
WPC Chairman Jeff Grant says the letter was a reminder to growers that time is running out, and although prices are strong right now, they still need to insure against future drops.
“Closing date is the 16th February and we need to get that 65 million kilos for the co-op to start.
“A lot of the issues that were debated in the early part of the prospectus float have disappeared.
“It’s now down to farmers making a decision in their own minds about whether they want a change in the industry or not.”
The co-op has already extended the deadline for commitment three times due to time constraints for some, but has said publicly this is the final one.
So far, the effort has only managed around $35m from growers, and some industry commentators are picking the bid to fail.
One of the most vocal opponents to the move, the Wool Exporters Council, is telling growers not to worry if the float doesn’t reach its target, as the industry right now is in good shape.
WEC President John Dawson says early research show most growers aren’t behind the scheme, and its not a big concern.
“It’s business as usual as far as we’re concerned.
“The article spells out why the fundamentals of the wool industry have changed a lot in the last 12 months, and it’s full steam ahead now.”
The commitment deadline is Wednesday next week, and we’ll be updating you on progress in the interim.
