Wool Partners Co-operative is preparing for another attempt to try and win the support of New Zealand’s wool producers, and establish a farmer-owned wool co-operative.

WPC board member Jeff Grant says the organization is currently considering the merits of three alternative offers and will have chosen the pick of the bunch within 10 days.

Jeff Grant says the board has been addressing the concerns of growers who had expressed interest in the initial plan but who didn’t commit and says it is confident it can remedy the short-comings of its first offer which last month failed to attract the necessary level of grower support.

“One of the issues that was a sticking point for some growers was the necessity for growers to commit 100% of their wool to the co-op for a period of say five years…

“The other is exploring options around the co-op having less than a 100% shareholding initially and then increasing that to 100% over a period of time by using a cornerstone shareholder.”

“The balance might be held by a long-term cornerstone shareholder who would have an investment in both the co-op and would obviously also be a player in the market further down the value chain.”

 WPC’s original offer was supported by the equivalent of 30 percent of the nation’s wool clip – it needs 50 percent to succeed.

Jeff Grant says the survey showed there was a very strong commitment by those who voted for the first prospectus.

“The range of funding ranges from say $15 million to $40 million.

“Depending on what option we eventually settle on that will determine the total capital raise required but we are comfortable that the capital variety will be well within the figures we were able to establish the first time around.” 

The original offer was widely criticized for being scant on details of how the business model would work.