Editorial: Wool's Back in the Black
OPINION: Confidence in the wool sector is rebounding as prices hit levels not seen in more than 15 years.
Mark Shadbolt, chairman of Wools of New Zealand, says the extension has been made to provide every opportunity for growers to take advantage of the offer, which to date has attracted positive support though remains short of the minimum level required of $5 million.
The offer aims to raise $10 million from growers to pursue the Wools of New Zealand international marketing and sales strategies.
Shadbolt says many growers had conveyed concerns related to workload pre-Christmas not allowing enough time to make a considered decision; and financial pressure due to the low returns from both wool and lamb as well as current account pressure.
"The financial pressure that many growers find themselves under highlights the need for growers to do something for themselves, invest outside the farm gate and influence the long term viability of the sheep industry."
The directors are also well aware of the Christmas mail delays although there has been a very steady build-up of applications to the original closing date.
Shadbolt says there were additional considerations including:
• Current discussions with corporate wool groups that required more time;
• The New Zealand Wool Services International share offer that would fall due at around the same time as the closing of the Wools of New Zealand Prospectus allowing a possible transfer of funds; and
• Growers indicating they would subscribe once their lamb cheques were received.
"Support for the Prospectus has been overwhelmingly positive. The directors thank each and every grower who has met the original closing date. We remain confident that growers will recognise the value in our commercial proposition and not let ownership of Wools of New Zealand slip from growers' hands," Shadbolt says.
"We would urge growers to act now to secure a stake in a 100% grower owned sales and marketing company representing their interests in the international market."
For further information on the Prospectus and Investment Statement visit www.ourwool.co.nz
