Media Release - 4 November 2009
Farmers keen to take up ownership opportunity of Just Shorn
Farmers have been quick to respond to the opportunity of joining the Primary Wool Co-operative (PWC) which has just
launched a membership drive. Despite the initiative being underway for less than a month they have already had over
sixty growers join and have received a significant number of requests for further information.
Co-operative Chairman Bay de Lautour said the main reason for those joining the co-operative is to support the efforts
of PWC’s joint venture company Elders Primary Wool (EPW) to return the profitability of strong wool to growers.
PWC Directors have no doubt the brand, Just Shorn TM and its consumer focus will increase the price farmers receive for
their wool.
“Farmers are keen to show support for the initiative and the change in thinking. They understand the need to educate
carpet retailers, designers and purchasers about the benefits of wool over synthetic. By increasing demand for wool
carpet we will be able to gain a better price for our product.”
John Beattie from the Maniototo has just signed up. “Recently I took the opportunity to participate in a wool-growers
tour to China to learn more about Elders Primary Wool. I was impressed with their commitment to the wool industry and
their marketing strategy which targets the end-user, the consumer. Along with grower contracts, I believe this is the
way of the future for wool and consequently I have joined the Primary Wool Cooperative as a sign of my support for
Elders Primary Wool and their strategy.”
Board member Howie Gardner believes that membership benefits make joining the co-op a logical business decision.
“Whilst many are electing to invest up to their maximum levels, the minimum investment up front is $500. This investment
will ensure the ongoing development of the EPW marketing initiatives, and will return the grower a rebate of 3c/kg of
wool traded through auction or the Wool Marketing Enterprises (WME) programme,” says Gardner. “This rebate effectively
refunds the cost of the investment and continues to provide future returns.”
Both Gardner and de Lautour agree that the mix of farmer and corporate ownership of Elders Primary Wool is advantageous,
allowing for greater sharing of information and a more integrated supply chain from farm gate to end consumer.
Gardner added “We greatly value the relationship we have with Elders and JSB (one of NZ’s largest exporters) through our
joint venture – Elders Primary Wool. Elders are a significant contributor to what we are trying to achieve for New
Zealand growers with initiatives such as Just Shorn. The levels of expertise, resources and international contacts that
the Elders camp brings to this campaign cannot be underestimated.”
The present membership drive hopes to gain 1000 new shareholders by the end of the year and is open to all wool growers.
Interestingly a number of existing members have also responded to the call, taking up extra shares.
ENDS
Supporting Information
The Primary Cooperative was originally formed in Dannevirke in 1974 as East Coast Wool Cooperative, to support the new
wool spinning plant, New Zealand Woolspinners Ltd, and to allow farmers to participate further down the supply chain in
scouring, spinning and exporting. CRT’s wool division merged with East Coast Wool in 2002 and was renamed as the Primary
Wool Cooperative.
Elders Primary Wool (EPW) was formed in 2005 as a joint venture between Elders New Zealand and Primary Wool Cooperative
(PWC), to strengthen the Cooperative and continue to increase wool revenue for its farmer members. The Cooperative has
nearly 900 shareholders with approximately half in each island and has paid rebates on all members’ wool sold at auction
through EPW. Last year $159,000 was paid in rebates and shares.
PWC is delighted to partner Elders as the first company to register a “Primary” brand for New Zealand wool carpets. The
Just Shorn™ brand is expected to provide the price pull that will enable growers to regain confidence in the wool
industry. The Primary brand structure allows further ingredient brands to be attached, such as “Romney” or “Perendale”.
PWC has been striving to achieve this breakthrough for twenty years, and at last, largely due to the strength of the
Elders organisation both in New Zealand and worldwide, this exciting milestone has been achieved. A number of factors
have emerged in recent years, including the consumer’s desire to source green sustainable goods that are produced
ethically and are traceable back to the producer. Wool Marketing Enterprises (WME) will achieve all that with New
Zealand strong wool.
Further details of the Cooperative can be obtained on our website www.primarywool.co.nz