Federated Farmers has praised Merino Grower Investments' move to purchase PGG Wrightson’s half share in New Zealand Merino.

PGG Wrightson announced it would sell its 50 percent stake in New Zealand Merino for $7.6 million last month.

The federation’s vice-president Donald Aubrey told Country 99 TV that the decision is a wise one which would put the industry in the hands of its growers.

“It’s a strong company.  It is certainly going to cost quite a lot to acquire a half share but having said that, that investment is warranted and will allow growers to achieve full value in the future for their product.” 

Donald Aubrey says the move will create a grower and employee owned company and that New Zealand is entering a new era for fine wool.

But he says the opportunities for Merino are not solely limited to wool.

“The Merino Company is working very closely with Silver Fern Farms and have put together contracts for growers to supply fine wool meats. 

“That’s another area of involvement that the company has and continues a long tradition of innovative marketing.”