Wools of New Zealand signs major deal in China
Wools of New Zealand has signed a partnership agreement with a leading Chinese manufacturer as the company looks to further grow demand in China and globally.
Wools of New Zealand (WNZ) and Primary Wool Co-operative (PWC) shareholders have overwhelmingly voted in favour of a proposed merger between WNZ and PWC-owned CP Wool (CPW).
More than 99.7% of WNZ shareholders and 100% of PWC shareholders who voted supported the merger, which will see both companies become partners in a new entity called Wools of New Zealand LP.
The new organisation will combine the trading and operating businesses of WNZ and CPW.
“Growers have spoken and backed our vision to build one organisation with strength and scale to make a real difference to New Zealand’s struggling wool industry,” says James Parsons, chair of WNZ.
“We are very pleased with this positive result, which validates our strategy to consolidate the sector and better link the supply chain from the grower through to the consumer. By combining operations, we can provide the scale, focus and shared vision to achieve better outcomes for our growers.”
Parsons says the merger represents the first serious grower-owned consolidation of the industry in decades.
“By joining forces, we can deliver on our market vision and ultimately better realise the full potential of wool,” he says.
“We appreciated and value the support and engagement from shareholders over the past 12 months and look forward to announcing further initiatives in the coming months.”
Richard Young, chair of PWC and chair of CPW, says the result lays the foundation to deliver improved fortunes for the wool sector.
“The single grower-owned entity will help drive our shift from wool as a raw commodity to grower-owned and branded consumer wool products. Ultimately, the development of an integrated supply chain aims to improve returns for our grower.
“It will enable us to capture greater value for wool growers through shortened supply chains and invest deeper in marketing and sales to deliver New Zealand-branded natural strong wool products that meet consumer demand.
“I want to thank growers for supporting the move. We now have the ability to chart our own destiny as growers and capture greater value. Farmers need two positive income streams from sheep. We must now focus on delivering these better outcomes that we believe this combined strategy will unlock.”
PWC held a Special General Meeting on 4th November, and WNZ on 5th November.
Over 53% of WNZ’s share capital and 41.5% of PWC’s share capital took part in the votes.
The WNZ and PWC boards expect to complete the transaction by 30th November 2021.
The new entity will be called Wools of New Zealand LP and transact approximately one third of NZ’s wool clip as well as exporting WNZ-branded wool and carpet.
Like many manufacturers around the world, European agricultural machinery and tractor manufacturers are currently operating in a difficult market environment. But they are heading to the world’s largest agricultural machinery event in Hanover next month with a degree of cautious optimism.
Established in 2021, the John Deere Technician of the Year Awards champion the important contribution parts and service technicians make to the Australian and New Zealand agriculture, construction and forestry industries.
Beef + Lamb New Zealand (B+LNZ) is calling on farmers from all regions to take part in the final season of the Sheep Poo Study aiming to build a clearer picture of how facial eczema (FE) affects farms across New Zealand.
New Zealand is closer to eradicating bovine TB than ever before, but possums remain a threat, says Beef + Lamb New Zealand.
Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.
The ACT Party says media reports that global dairy giant Nestle has withdrawn from the Dairy Methane Action Alliance shows why New Zealand needs to rethink its approach to climate.
OPINION: Ageing lefty Chris Trotter reckons that the decision to delay recognition of Palestinian statehood is more than just a fit…
OPINION: A mate of yours truly recently met someone at a BBQ who works at a big consulting firm who spent…