Meat & Wool New Zealand welcomes wool announcement

MEDIA RELEASE
15 May 2008

Meat & Wool New Zealand welcomes wool announcement

Meat & Wool New Zealand has welcomed today's announcement that PGG Wrightson has entered into a heads of agreement with a new grower cooperative, Wool Grower Holdings Limited, formed by the Wool Industry Network (WIN). This agreement sees the transfer of the PGG Wrightson wool business into a newly established entity, The Wool Company Limited.

Meat & Wool New Zealand Chairman, Mike Petersen, says the establishment of The Wool Company Limited was a milestone for the industry and the first step in the establishment of a pipeline to market for New Zealand strong wool growers.
"We've been working hard since the establishment of WIN to achieve a strategy that is going to lift returns to New Zealand strong wool growers, who have been doubly impacted by the poor returns for both sheepmeat and wool."

"Meat & Wool New Zealand's investment of levy funds in WIN was always about facilitating a significant change to improve farmer returns and I look forward to farmers giving their support to the new growers' cooperative Wool Grower Holdings Limited, formed by WIN as part of its "Model for Change" strategy."

Mr Petersen said this was a very positive development for the wool industry and Meat & Wool New Zealand also continues to push for reorganisation for the red meat industry to improve farmgate returns.

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